Todays Notes
FREE ENTERPRISE
5 MAIN FEATURES
1.
Right to own property and to enter into
contracts
2.
Right to make individual choices
3.
Right to engage in economic competition
(protecting against monopolies)
4.
Right to make decisions based on self interest
5.
Right to participate in the economy with limited
government involvement and regulation
THE UNITED STATES ECONOMY AT WORK
US Economic GOALS
1. Economic Freedom
·
So you have the freedom to do whatever you want
with your business
·
You have the right to start a business or close
a business
2. Economic Efficiency
·
Make the best use of our Resources
3. Economic Equity
·
That government decisions treat everyone fairly
4. Economic Security
·
Protect citizens from
a)
Poverty (welfare, food stamps, Medicare)
b)
Unemployment (unemployment benefits, jobs
programs)
c)
Bank failure (bail outs, FDIC Federal Deposit, Insurance Corporation)
1.
FDIC will ensure your money up to 250,000.
5. Economic Stability
·
We want to have a stable government
·
We want to have stable prices… control inflation
(prices go up)
o
INFLATION
§
Rise in prices across the board (all products
costs more)
6. Economic Growth
·
We want the growth of the US to continue
economics… gross domestic product
·
We want to increase a high standard of living...
How much we consume. Ex. Gas utilities, entertainment, movies
o
STANDARD
OF LIVING: How much a consumer consumes (buys)
The 3 main economic actors in a business transaction:
1.
Buyer
2.
Seller
3.
Government
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