Rank these Goals Economic Growth Full Employment Economic
- Slides: 16
Rank these Goals Economic Growth Full Employment Economic Efficiency Price Stability Economic Freedom Equitable Distribution of Income Economic Security Balance of Trade
Three Basic Economic Questions ¡ In allocating resources, there are three basic economic questions that must be resolved by every society
Given that resources are scarce ¡ An economic system must decide: l l l What to produce? How to produce? For Whom to produce?
What to produce ¡ The question concerning the decision made by an economy about what and how much of a particular goods and services to produce with its limited resources.
How to produce? ¡ The question concerning the decisions made by an economy about the technology used to produce a good and service.
For Whom to Produce? ¡ The question concerning the decisions by an economy about income distribution – who gets how much of the goods and services produced.
The Four Economic Goals ¡ The success of a societies economy is judged by four goals: l l Economic Growth Economic Efficiency Full Employment Price Stability
Economic Growth ¡ A nation’s economy must grow for it to improve its standard of living: Level of economic prosperity ¡ What kinds of things are included in standard of living? ¡ This is especially true if the population is growing, the economy must also grow to provide new jobs and income.
Economic Efficiency ¡ ¡ Resources are always scarcecountries must maximize what they will get with the resources they have to work with Where on a PPF curve is their economic efficiency?
Full Employment Full employment means that anyone willing and able to work can find a job ¡ When this happens the country is maximizing productivity and using all of its labor resources ¡ When there is unemployment, how could it be displayed on a PPF curve? ¡
Price Stability Most people do not like uncertainty ¡ We want to know that we can get milk and bread for a certain price ¡ It is a goal governments to control inflation/deflation and keep the prices stable ¡ Can you think of a way that producers keep prices stable, but still take away more profit? ¡
Using the Economic Goals indicate witch goal satisfies each statement Congress passes a tax act designed to stimulate investment in new capitol equipment The Federal Reserve bank announces plans to fight inflation Mega Motors Corporation announces plans to install robots on all assembly lines The president announces a new program designed to find jobs for workers who are replaced by robots
Additional Goals that are also important to a society are called socioeconomic goals ¡ Examples of Socioeconomic goals: l l l Protection of the environment Financial security Economic equity Economic justice Economic freedom
Sometimes there are trade-offs between economic goals and socioeconomic goals ¡ In each situation explain the economic goal that will be promoted and the socioeconomic that will not be promoted l l A farmer uses insecticides to produce more apples A manufacturer uses robots to produce more goods at a lower cost
What do you think? Put a R next to goals you think Republicans would value ¡ Put a D next to goals you think Democrats would value ¡ l l l l l Economic Growth Economic Efficiency Full Employment Price Stability Protection of the environment Financial security Economic equity Economic justice Economic freedom
Political Spectrum ¡ Democrat l Liberals Tend to favor the environmental goals and economic equality ¡ Republicans l Conservatives tend to favor economic freedom and Laissez Fair policies which means “let them do (as they please)”
- Strategic goals tactical goals operational goals
- Strategic goals tactical goals operational goals
- Economic growth vs economic development
- Economic development vs economic growth
- Jefesto
- Full rank
- General goals and specific goals
- Examples of generic goals and product-specific goals
- T-tess goal setting template
- Absolute growth rate and relative growth rate
- Monocots vs eudicots
- Growthchain
- Primary growth and secondary growth in plants
- Chapter 35 plant structure growth and development
- Geometric vs exponential growth
- Neoclassical growth theory vs. endogenous growth theory
- Organic growth vs inorganic growth