1. American Free Enterprise

2. I. The benefits of free enterprise
Basic Principles
Profit motive
Open opportunity
Private property
Freedom to buy and sell
Free contract
Voluntary Exchange

3. B. The Role of the Consumer 1
B. The Role of the Consumer 1. Freedom to make their own economic choices 2. Can impact political processes through interest groups

4. C. Economic Freedom and the Constitution 1. Property rights a
C. Economic Freedom and the Constitution 1. Property rights a. Due process b. Eminent domain 2. Taxation a. money paid by individuals and businesses to state and federal governments. 3. Contracts a. Constitution guarantees people and businesses the right to enter into binding contracts. b. Congress cannot change the terms of private contracts.

5. D. The Role of Government in the Marketplace 1
D. The Role of Government in the Marketplace 1. Information and Free Enterprise a. Public interest b. Public disclosure laws 2. Protecting Public Health, Safety, and Well-Being a. Consumer protection b. Ex: EPA, zoning laws 3. Negative Effects of Regulation a. Can hurt businesses b. Costly to taxpayers

6. Picture Pages (You have five minutes to complete)
Profit Motive
Open opportunity
Legal equality
Private property rights
Free contract
Voluntary exchange
Interest group
Patriotism
Eminent domain
Public interest
Public disclosure laws
Pages 49-55

7. Read pp
Answer 1,3,4,5,6,7 Keep in your notebook

8. Picture Pages Free enterprise Voluntary exchange
Private property rights
Profit
Profit motive
Competition
Consumer sovereignty
Mixed or modified free enterprise economy pp

9. Economic and Social Goals
Economic Efficiency
Economic Equity
Economic Security
Full Employment
Economic Growth
Economic Freedom

10. To Do…
Read 48-53
Answer numbers 1-8 and on page 56

11. Section 3.3 + 3.4 Read over Define: Public good Public sector
Private sector
Infrastructure
Free Rider
Poverty threshold
Welfare
Cash transfers
In-kind benefits
Grant

12. Open-Notebook Quiz
What are the four principles of America’s free enterprise system?
Please define profit motive.
3. Please define competition
4. Please define consumer sovereignty
5. List four of the six goals of free enterprise.
6. Describe main characteristics of a traditional economy.

13. Open-Notebook Quiz
What are the four principles of America’s free enterprise system?
Please define eminent domain.
3. Legal equality
Private property rights
Interest group
6. Public disclosure laws
7. Patriotism
8. Why are public goods examples of market failures?
9. List one negative externality
10. List one positive externality.

14. Government: Providing a Safety Net
What responsibilities does the government have to its citizens? Providing a safety net - Poverty threshold: income level below that which is needed to support families or households - Welfare system: Government aid to the poor

15. Welfare Began under FDR during the Great Depression
Under attack in the 1980s
Redistribution discourages productivity
2000s – under debate today

16. Welfare Cash Transfers In-kind Benefits Social security
Unemployment insurance
Workers’ Compensation
In-kind Benefits
Food stamps
Subsidized housing
Education
Medical benefits

17. With a partner
Complete the DBA on page 75

18. Pages 76 – 77: Partner Work
What types of businesses make the most money in America?
Has the number of farms increased or decreased since 1930?
When you look at the resources on the map on p. 77, write down three states and the industries that each state should encourage.
Example: Tennessee should focus on hydroelectric power

19. pp
What is the percentage of Hispanic women in the workforce? How do women’s earnings compare with that of men? What two occupations have the highest levels of unemployment?

20. pp
What percentage of energy production comes from biofuels? What type of business had the largest sales? Why is spending on medical care so high? How much has consumer credit grown in the past ten years? Why?