2.04 u.s. economy - robeson.k12.nc.us€¦ · united states’ economy summary largest national...
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2.04 U.S. Economy
Objective 2.04 Understand the United States’ economic system.
Mixed Economy A combination of a
free enterprise (or market) and a command economy.
Privately owned businesses and government both play important roles.
The marketplace produces: cars health care technology food (with some
government regulations)
The government provides: defense education
United States’
Mixed Economy
Free Enterprise/Market Economy
Market Economy
Characteristics
Private property ownership.
Freedom of enterprise and Choice
Motive of self-interest
Competition
System of markets and prices
The market addresses consumer wants
Market Economy
Advantages Individuals can own businesses and
resources
Individuals can buy and sell goods and services
Competition in the market leads to greater choices
Consumers play a great role in the economy
Market economy
Disadvantage
The critical role of the consumer in the market can create a tremendous divide between the poor and the wealthy
United States’
Mixed Economy
Command Economy
Limited Government
The government helps protect people by being a body that monitors public safety through regulatory agencies such as:
Food & Drug Administration (FDA)
Occupational Safety and Health Administration (OSHA)
The government provides some
services to take care of people’s
needs
Highways--roads and other transportation services
Schools and other public education services
Social Security
Medicare
Defense and public safety
Command Economy
Advantages Consumers have some
protection in the marketplace
Essential services are provided for citizens
Command Economy
Disadvantages Citizens have to pay taxes so
the government can provide services
Some think there is too much government control in the marketplace
United States’ Economy Summary
Largest national economy in the world
A mixed economy
Corporations and other private firms make the majority of microeconomic decisions.
Government has a minimal role in the domestic economy.
Business firms in the U.S. have much less regulation than those in many other nations.