1. The American Economy and Types of Government

2. Objectives Identify the human wants that our economy meets Describe the freedoms we have in our economy Explain how citizens benefit from the American economy Explain why we need a government Identify and define the 3 common forms of government Analyze how laws affect citizens

3. Terms To Know!!! Goods – physical products (i.e. food, clothing, CDs) Services – jobs you pay to have done Wants – desires for goods or services Economy – system for producing and distributing goods and services

4. Terms to Know (cont.) Consumer – a person who uses goods and services Market – a place where good and services are exchanged Price – the amount paid for a good Money – anything you can use to pay for goods and services

5. The Five Economic Freedoms Freedom – the opportunity to make personal and public choices

6. Freedom to buy and sell You have the freedom to charge whatever price you think you can get for a product Every person has the freedom to buy or not buy a product

7. Freedom to Compete You have the freedom to sell your good or service against other goods and services You will compete against other sellers Competition promotes innovation and improvements in products

8. What is a profit??

9. Freedom to Earn a Profit Profit is making more money for a product than it costs to make that product Profits encourage people to produce goods and services. People want to make money

10. The Freedom to Own Property You have the right to own property until you choose to sell it. You can buy and sell as you wish.

11. Freedom to Choose an Occupation You can choose what ever career that interests you Your success depends on if you have the proper skills for that career

12. What are the five economic freedoms? Freedom to buy and sell Freedom to compete Freedom to earn a profit Freedom to own property Freedom to choose an occupation

13. Forms of Government

14. Government Meets society’s needs by: Keeping the peace: making and enforcing laws Protecting the country: defense against outside attack Providing services: education, transportation, etc Maintaining other institutions: religion, education, family

15. Three types of Government

16. Monarchy Form of gov’t where all or most of power is in hands of individual Hereditary - Power passed down from generation to generation King George III

17. What are some examples of Monarchies? Saudi Arabia England Japan

18. Dictatorship Gov’t controlled by ONE person Power taken by FORCE Dictator – frequently a military leader –Relies on support from armies

19. What are some examples of Dictatorships? Saddam Hussein (Iraq) Adolf Hitler (Germany) Joseph Stalin (USSR)

20. Democracy System of gov’t power is shared by all the people Democracy means “gov’t by the people” People choose or elect their leaders to represent them

21. What are some examples of Democracies? United States England Japan Germany France

23. Which freedom gives you freedom to charge whatever you want? Freedom to Buy and Sell Freedom to Compete Freedom to Make a Profit Freedom to Own Property Freedom to Choose an Occupation

25. Let’s Try Again!!

26. Which freedom gives you the opportunity to make more on a product than you sold it for? a. Freedom to Buy and SellFreedom to Buy and Sell b. Freedom to CompeteFreedom to Compete c. Freedom to Make a ProfitFreedom to Make a Profit d. Freedom to Own PropertyFreedom to Own Property e. Freedom to Choose an OccupationFreedom to Choose an Occupation

28. Let’s Try Again!!

29. Which type of government is hereditary? a. MonarchyMonarchy b. DictatorshipDictatorship c. DemocracyDemocracy

31. Let’s Try Again!!

32. Which type of leader has a strong military backing? a. MonarchMonarch b. DictatorDictator c. Democratic governmentDemocratic government

34. Let’s Try Again!!

35. Final Thought Which type of government would you prefer? Why?