I. Economic and Social Goals

I. Economic and Social Goals

1. economicfreedom

2. economic efficiency

4. economicequality

5. economicsecurity

3. economicgrowth

6. price stability

7. fullemployment

1. economic freedom

individuals businesses

2. economic efficiency

cause (if) then

3. economic equality

4. economic security

cause (if) then

Social Security

5. full employment

then

ifif

then

6.price stability

If_____ _________

people need more______to buy food, clothing and

shelter.

If people live on fixed income

(income that does not change)

then______

__________

7. economic growth

people want…

****

more growth

More_____and

________

future goals

as society evolves (________)

II. Resolving Trade-Offs Among Goals

Goal:Goal:

How are trade offsresolved….

opportunity cost(trade off)

opportunity cost(trade off)

Section 3;. American

Free Enterprise

A. Economic Freedom

B. Voluntary Exchange

C. Private Property

Rights

D. Profit Motive

A. Economic Freedom

B. Voluntary Exchange

C. Private Property

Rights

D. Profit Motive

Example: PEOPLE Example: Example: Example:

Example: BUSINESS

I. CHARACTERISTICS OF FREE ENTERPRISE CAPITALISM

Why do entrepreurs risk their money?

PROFIT MOTIVE!!!They want to earn MORE $$$

Which restaurant will make the most profit? The 3 restaurants will ___________ witheach other for consumer spending.

compete

II. Role of the Entrepeneur

Organizes:1._________________2._________________3._________________Wants to see reward called _____________________

III. Role of the Consumer

Who is always right?_______________“The __________ is always ________”

This is called c___________S________

A. Protector

B. Provider

C. Regulator

D. Consumer

Example: Example: Example: Example:

IV. The Role of the Government

v. Modified Free Enterprise

people and business buy and sell

• government must protect, provide,

regulate and consume

• How much do we want government

involved?