1. Characteristics of the U.S. Economy

2. The United States economy is primarily a free market economy; but because there is some government involvement it is characterized as a _______ economy. mixed The government works to protect consumers and businesses.

3. Sometimes, they may seem to be too protective:

4. Free Markets The U.S. generally has a free market policy. __________ and ___________ are allowed to happen ___________ much interference from the __________________. Buying sellingwithout government

5. Businesses in the U.S. are operated in order to make a _______. Profit is the _________ left over after all ____________ have been _______. This is the ____________ for business to exist. profit money expenses paid incentive What percentage of his earnings does Slappy keep as profit? What is Slappy’s biggest expense? What could Slappy do to increase his profits?

6. The government encourages ______________ between businesses. There is __________ between businesses for the same ______________, resulting in better __________ and lower ___________. competition rivalry customers quality prices

7. How does competition benefit these consumers?

8. Private Property _____________ and ______________ can own the means of ______________ and ___________ property. Individuals businesses productionprivate Government is owner and decision maker for the public sector. (roads, courts, schools…) Individuals and businesses are owners and decision makers for the private sector. (houses, shops, factories…)

9. Consumer Sovereignty ______________ determine what goods and services are ____________ by what they ________. Businesses produce goods that meet ___________. Consumers produced buy demand High demand Low demand

10. Many products are presented to consumers, but consumer sovereignty determines which ones will be successful. “If we don’t buy it, they won’t keep making it.” – Mr. Knoche

11. Government Influence Government ____________ businesses to _____________ citizens and _____________ competition. Government intervenes in a market economy when the perceived benefits of a government policy outweigh the anticipated costs. regulates protect promote

12. What do you think is the opinion of this artist?