23Every society is faced with three economic questions: What goods and services should be produced? How should they be produced? Who should get what is produced? How a society answers those questions depends on its economic goals. These goals include economic freedom, efficiency, equity, growth, security, and stability.L2: What? How? For whom?L3: Need 5: economic freedom, efficiency, equity, growth, security, and stability
24How do mixed economies divide the decision making?
25Most countries today have a mixed economy, in which both the govt and indiv have a voice in economic decisions. Who decides what varies greatly. Some countries, incl the US, min govt regulation of the mkt. Others, like China, still exercise considerable govt control over economic activities.L2: authoritarian socialist (Communist), capitalist, democratic socialistL3: auth soc: Govt owns/controls almost all factors of prod-command), capitalist: Indiv own factors of prod- market, dem soc: Govt owns some factors of prod- lmt key industries: elec, phone- market
26What are the key characteristics of the US economic system?
27L2: Need 5: economic freedom, limited government, competition, binding contracts, equal opportunity, profit motive, and property rights.L3: economic freedom (Laissez-faire/choose job, live, products), limited government (regulates w/o controlling indiv, firms, or mkts), competition (Firms are free to compete- benefits the consumer), binding contracts (Right to enter & legal), equal opportunity (Legal right to seek education & compete in marketplace), profit motive (Provides incentive to work and create new businesses), and property rights (Right to sell, buy, & control the use of our “property”).