Free Enterprise Economy
What is the free enterprise economy?
Defined as:
The American economy where competition is allowed to flourish.
Resources are privately owned.
Minimum government interference.
Name and explain the four roles of the government.
Protector: Enforces laws to precent wrongdoing.
Provider: All levels of government provide goods and services. National level provides defense.
State level provides education. Local level provides parks and libraries.
Consumer: Government also consumes factors of production.
Regulator: Oversees interstate commerce, communications, banking, and nuclear power.
Regulates insurance companies. Regulates business activity ( permits, construction )
Explain why you think there is a need for limited government in regulation within the economy.
So businesses have the change to prosper and grow, but to also make sure everything is fair.
What is legislation?
Laws
What part of the notes does Jmo enjoy the most?
"Previously on"
Identify the characteristics of a free enterprise economy.
1. Economic Freedom
2. Voluntary Exchange
3. Private Property Rights
4. The Profit Motive
5. Competition
Why do trade-offs among goals exist?
People have different ideas on how to reach these goals.
Sometimes goals conflict with other goals.
Why do you think the government passed antitrust laws?
Restrict monopolies and trusts.
Prevent market failures.
What are trusts?
Trusts are legally formed combinations of corporations.
Without looking, what character is on Coach McKinney's cup?
Superman/Batman
How does the American economy incorporate the main characteristics of a free enterprise economy?
The American economy includes private property rights, business owners have freedom, and nothing is forced. We have competition and strive to be better.
Identify the economic and social goals maintained by the government.
Economic Freedom
Economic Efficiency
Economic Equity ( justice/fairness )
Economic Security ( protection )
Full Employment
Price Stability
Economic Growth
Why do you think the government is involved in economic affairs?
To make sure that competition is secure.
Makes sure the same level of prices and services are set.
Use the tax system to turn a negative into a positive.
Identify the other name given to the free enterprise economy.
Free Market System
Capitalism
How long is our 6th period class in minutes?
53 minutes.
How does a free enterprise economy's "freedom of producers" provide benefits for individual consumers?
Individual Freedom
Variety of Goods
Adapting to Change
Promoting Progress
Creation of Wealth
How are conflicts among economic/social goals resolved?
Firms and the government need to work together for the benefit of the consumers.
People should exercise their right to vote for politicians who support their economic position.
The flexibility of the U.S. economy allows for these goals to resolve.
Name a regulatory agency.
Food and Drug Administration ( FDA ) 1906
Federal Trade Commission ( FTC ) 1914
Federal Communications Commission ( FCC ) 1934
Federal Aviation Administration ( FAA ) 1958
Equal Employment Opportunity Commission ( EEOC ) 1964
Environmental Protection Agency ( EPA ) 1970
Occupational Safety and Health Administration ( OSHA ) 1970
Explain the Sherman Act of 1890.
Protects trade and commerce against unlawful control and monopoly.
Who is most likely to be on their phone?
Steven.
What are the weak points that are part of a free enterprise economy?
Uneven Economic Growth
Growing gaps between rich and poor
Large “supply-side” tendencies
Rights and Responsibilities of businesses
What do you think the role of the government should be in the American free enterprise economy?
Free Response. Answer must be made using logic and information from this lesson.
Pick an agency from the list and look at what it regulates. Why would the government be involved in that area?
Food and Drug Administration ( FDA ) 1906
Federal Trade Commission ( FTC ) 1914
Federal Communications Commission ( FCC ) 1934
Federal Aviation Administration ( FAA ) 1958
Equal Employment Opportunity Commission ( EEOC ) 1964
Environmental Protection Agency ( EPA ) 1970
Occupational Safety and Health Administration ( OSHA ) 1970
Explain the Robinson-Patman Act of 1936.
Forbid discounts to large buyers unless discounts are available to all.
How many spots on average does a giraffe have?
A newborn giraffe has about 40 to 50 spots but as they grow up, the number increases to 200+ on an average.