Economic Systems and the American Economy Economic Systems

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Economic Systems and the American Economy

Economic Systems and the American Economy

Economic Systems • Standard of Living – is the material well being of an

Economic Systems • Standard of Living – is the material well being of an individual, group, or nation measured by how well their necessities (needs) and luxuries (wants) are satisfied.

Economic Systems • Market – Freely chosen activity between buyers and sellers of goods

Economic Systems • Market – Freely chosen activity between buyers and sellers of goods and services.

Economic Systems • Economic System –The way in which a nation uses its resources

Economic Systems • Economic System –The way in which a nation uses its resources to satisfy it people’s needs and wants.

Economic Systems • Types of economic systems: –Traditional economy • System in which economic

Economic Systems • Types of economic systems: –Traditional economy • System in which economic decisions are based on customs and beliefs handed down from generation to generation.

Economic Systems • Types of economic systems: –Command economy • System in which the

Economic Systems • Types of economic systems: –Command economy • System in which the government controls the factors of production and makes decisions about their use.

Economic Systems • Types of economic systems: –Market economy • System in which individuals

Economic Systems • Types of economic systems: –Market economy • System in which individuals own the factors of production and make economic decisions about their use.

Economic Systems • Types of economic systems: – Mixed economy • System combining characteristics

Economic Systems • Types of economic systems: – Mixed economy • System combining characteristics of more than one type of economy.

Economic Systems • Each economy must answer the following questions: – What should be

Economic Systems • Each economy must answer the following questions: – What should be produced? – How should it be produced? – For whom should it be produced? (distribution) – What is the potential for growth? (current consumption vs. future consumption)

Characteristics of the American Economy • Limited role of Government – Hands off approach,

Characteristics of the American Economy • Limited role of Government – Hands off approach, the economy will correct itself eventually. – Laissez-faire: government interference is minimum.

Characteristics of the American Economy • Freedom of Enterprise – The words Market Economy,

Characteristics of the American Economy • Freedom of Enterprise – The words Market Economy, Capitalism, and free enterprise are one in the same. • Freedom of choice

Characteristics of the American Economy • Profit Incentive – Desire to make money that

Characteristics of the American Economy • Profit Incentive – Desire to make money that motivates people to produce and sell goods and services.

Characteristics of the American Economy • Private Property • Competition – Rivalry among producers

Characteristics of the American Economy • Private Property • Competition – Rivalry among producers or sellers of similar goods and services to win more business.

Goals of Free Enterprise • Economic Freedom • Economic Efficiency (wise use of available

Goals of Free Enterprise • Economic Freedom • Economic Efficiency (wise use of available resources) • Economic Equity (economic policy benefits everyone fairly)

Goals of Free Enterprise • Economic Security • Economic Stability • Economic Growth (more

Goals of Free Enterprise • Economic Security • Economic Stability • Economic Growth (more goods, jobs, & wealth)

The American Economy The American Economy The USThe American Economy The American Economy The US
ECONOMICS Notes ECONOMIC SYSTEMS Command Economy Market EconomyECONOMICS Notes ECONOMIC SYSTEMS Command Economy Market Economy
ECONOMICS Notes ECONOMIC SYSTEMS Command Economy Market EconomyECONOMICS Notes ECONOMIC SYSTEMS Command Economy Market Economy
Economic Systems Traditional Economy In traditional economy skillsEconomic Systems Traditional Economy In traditional economy skills
National Economy National Economy An economy is aNational Economy National Economy An economy is a
Token Economy What is Token Economy Token economyToken Economy What is Token Economy Token economy
Israel Economy Kenya Israel Economy The Israeli economyIsrael Economy Kenya Israel Economy The Israeli economy
Emotional Economy Emotional Economy The book Emotional EconomyEmotional Economy Emotional Economy The book Emotional Economy
Planned Economy Planned Economy Planned economy is usedPlanned Economy Planned Economy Planned economy is used
Command Economy Mixed Economy Market Economy m oCommand Economy Mixed Economy Market Economy m o
CHAPTER 2 Economic Systems and the American EconomyCHAPTER 2 Economic Systems and the American Economy
Economic Systems and the American Economy Chapter 2Economic Systems and the American Economy Chapter 2
CHAPTER 2 Economic Systems and the American EconomyCHAPTER 2 Economic Systems and the American Economy
CHAPTER 2 ECONOMIC SYSTEMS AND THE AMERICAN ECONOMYCHAPTER 2 ECONOMIC SYSTEMS AND THE AMERICAN ECONOMY
Economics and the American Economy Economy Greek originEconomics and the American Economy Economy Greek origin