Vocabulary
Economic systems
refers to the way a society organizes the production, distribution, and consumption of goods and services.
The Economic system answers three basic questions??
What to produce?
How to produce?
For whom to produce?
Give me 1 country that is a Mixed economy country
United States, United Kingdom, Germany France, Iceland ,Sweden
What Roles does the government play in the marketplace
–Carrying out the constitutional responsibilities to protect property rights, contracts, and other business activities
–Making sure that producers provide consumers with information
–Protecting the health, safety, and well-being of consumers.
Regulation
While the free enterprise system advocates minimal government intervention
Traditional Economy
The government answers the basic economic questions
•Advantages: able to act quickly in emergencies, provide for all people equally
•Disadvantages: Inefficient, no incentive to work hard or be creative
•Ex. Communist Countries (China, Vietnam, North Korea, former Soviet Union, Cuba)
Economic questions are answered by individual ______ and _____
also known as _____ or ______
buyers and sellers.
FREE ENTERPRISE or CAPITALISM
_______ is a social and political philosophy based on the belief that democratic means should be used to distribute wealth evenly throughout society.
Socialism
What are three key economic rights that Americans enjoy????
Legal equity
Private property
Freedom to buy and sell
Economic stability
The government may intervene in economic activities to manage economic fluctuations, such as during recessions or inflationary periods. Policies may include monetary and fiscal measures to stabilize the economy and promote sustainable growth.
Privvate Property
Individuals and businesses have the right to own and use property
Government provides aid to the needy
Ex: _____,______, and ________
Medicare, Medicaid and Welfare
_________ Do not allow individuals freedom of judgment or action
Authoritarian
When. Multiple businesses compete for consumers' attention and dollars this is called????
Competition
Open Opportunity
The American principle of open opportunity says that anyone can compete in the marketplace.
Public Interest
the concerns of society
as a whole
While the United States is mostly a ________ it does have elements of a _________.
Free Market Economy
Command Economy
in a centrally planned economy the government makes all decisions regarding the ____ and ____ of ______and _______
the production and distribution of goods and services
Why is the United States considered by many to be a "Land of Opportunity"
Your own opinion or answer.
Profit Motive
The desire to earn profit motivates businesses to improve their products, reduce costs, and increase efficiency.
American Free Enterprise
is An economic system in which private individuals or businesses own and control the means of production and distribution of goods and services.
Ex: The United States is considered by many to be a “land of opportunity.”
What areFeatures of the American Free Market Economy????
Economic Freedom: individuals have the right to choose
2. Competition: more than one producer of goods/services ensures choice
3. Private Property: individuals have the right to own their own property, including business
What isn't presented in a centrally planned economy??? and who owns most property along with the means of production
Private ownership isn't present in centrally planned economies
The governement
When Transactions are made based on mutual agreement between buyers and sellers this is called???
Voluntary Exchange
Free Contract
the principle that people may decide what agreements they want to enter into