Broad Social Goals of an Economy Goal Economic

Broad Social Goals of an Economy

Goal Economic efficiency Economic equity Economic freedom Key Question Key Issue How well are scarce productive resources being allocated? It involves both producing the goods and services that people want and using inputs in a way that keeps production costs as low as possible. Is this policy or action fair? For some, equity means providing equal opportunity for people in society. For others, equity means equality of outcomes. Do I get to decide where to live, what job to have, how to spend and save my money, and so on? It means allowing students to choose career paths, workers to change jobs and join unions, consumers to choose how to spend and save their money, people to start businesses and close businesses, people to travel as they wish to, and so on. Economic growth How can we increase the standard When more goods and services are produced, it means of living for people in our society? that more goods and services are available to people. Economic security How do we protect people from risks in society? It means protecting consumers, producers, and resource owners from risks that exist in society. Economic stability How do we keep the economy stable so that people feel secure and can plan? We don’t want office buildings, manufacturing facilities, and equipment sitting idle. And, we don’t want people to be unemployed.

Goal Ranked #1 Ranked #2 Ranked #3 Ranked #4 Ranked #5 Ranked #6 Economic efficiency Economic equity Economic freedom Economic growth Economic security Economic stability

– What are the broad social goals of an economy? – What does each of these goals mean? – What is a trade-off? – What must policy makers do in order to develop policies for society? – Give an example of a policy and the trade-offs among broad social goals that occur as a result of the policy.