Transcript Economic Systems & Decision Making

Answer in your Notebook
 What are the three types of economic
systems discussed in class yesterday?
 What 3 questions do the 3 types of
economic systems try to answer?
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TODAY IN CLASS
 TYPES OF ECONOMIC SYSTEMS
 NOTES
 Economic and Social Goals
 FOLDABLE
 FINISH BROCHURE
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Evaluating Economic
Performance
Section 2
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 How can you evaluate economic
performance?
 How can we tell if the economic
system is working?
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Economic & Social Goals
1.
2.
3.
4.
5.
6.
7.
Economic freedom
Economic efficiency
Economic equity
Economic security
Full employment
Price stability
Economic growth
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Minimum wage
 Lowest legal wage that can be paid to
most workers
 Social security
 Federal program of disability and
retirement benefits that covers most
working people
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Inflation
 Rise in general level of prices
 High rates of inflation discourage
business activity
 Fixed income- income that does not
increase even though prices go up
 These people find it harder to pay & plan
for future
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Future goals???
 Cleaner environment
 Saving endangered species
 In the end, we are the ones who
decide on the goals that are most
important to us
 As a result, some of our goals could
change in the future
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Foldable: Economic and Social
Goals (Pages 41-44)
 Identify the 7 economic/social goals of the United
States.
 Answer the following questions about each goal:
 What is purpose of this goal?
 What does this goal actually look like in the
United States?
 How do YOU think that U.S. is doing in their
progress towards this goal? Explain.
 Future goals: if you could set a future goal for the
U.S. what would it be?
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Free Enterprise (2.3)
 Capitalistic economy in which
competition is allowed to flourish with
a minimum of government
interference.
 Characteristics: Economic freedom,
Voluntary exchange, Private property
rights, Profit motive, Competition
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Role of Entrepreneur
 Manages & organizes the factors of
production in order to seek profits
 People who start up businesses
 Many entrepreneurs fail but the
dream of success is too great to resist
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Role of Consumer
 They ultimately determine which
products are produced
 Consumer sovereignty- consumer is
the ruler of the market
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Role of Government
 Stems from desires, goals, &
aspirations of its citizens
 They are a protector, provider,
regulator, & consumer
 Their role is justified whenever the
benefits outweigh the costs
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