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Mixed Economy: Elements of the three different economic systems in one economy; the most common economic system Ex.) US Market-business competition, private.

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Presentation on theme: "Mixed Economy: Elements of the three different economic systems in one economy; the most common economic system Ex.) US Market-business competition, private."— Presentation transcript:

1 Mixed Economy: Elements of the three different economic systems in one economy; the most common economic system Ex.) US Market-business competition, private property, profit Command-government regulated agencies, schools, USPS Traditional-schools still follow an agricultural schedule

2 ADVANTAGESDISADVANTAGES FREEDOMSGOVERNMENT REGULATIONS BUY WHAT WE WANTLIMITED RESOURCES NO LIMITS TO WHAT YOU CAN HAVE TAXES WELFARE SYSTEMUNEQUAL DISTRIBUTION OF WEALTH

3 Two major trends in modern economies: 1. Many economies moving away from Command Systems and privatizing business. 2. Globalization by getting foreign investors.

4 FREE ENTERPRISE SYSTEM

5 What is the difference between open opportunity and legal equality? Open opportunity allows people to participate in the market by free choice Legal equality-everyone has the same economic rights

6 What besides profit, if anything, might motivate a person to start a business? Non profits fulfill a social need and some people create enterprises for that as well

7 What fads like the pet rock have you seen come and go? Pokemon Tickle Me Elmo Cabbage Patch Kids Virtual Pets Beanie Babies Silly Bands

8 List and explain the legal rights built into the free enterprise system. Open opportunity: everyone has the ability to enter the market Free contract: everyone has the right to decide which contracts they enter into Legal equality: everyone has the same economic rights

9 Explain the chain and effect reactions since the mid-1990s that led to the lower book prices for American consumers. Small book stores 1995 Borders and Barnes & Noble compete Pass along major savings Amazon Lower prices; access to everything More websites

10 GOALS OF THE FREE ENTERPRISE SYSTEM: 1.) Maintain economic freedom!

11 2.) Make the best use of scarce resources.

12 3.) The government tries to ensure that every citizen shares in the benefits.

13 4.) Economic stability – employment and stable prices.

14 5.) Economic security (insurance)

15 6.) Economic growth

16 MILTON FRIEDMAN MAJOR WORKS: CAPITALISM AND FREEDOM FREE TO CHOOSE BRIGHT PROMISES, DISMAL PERFORMANCES: AN ECONOMISTS PROTEST

17 MILTON FRIEDMAN HIS BELIEFS ON GOV’T. ROLE: MARKET SHOULD BE FREE TO OPERATE IN ALL FIELDS & PROFESSIONS (LAW, MEDICINE), CUTTING BACK ON REGULATIONS

18 MILTON FRIEDMAN BELIEFS ON LICENSING: LOWERING THE LICENSING STANDARDS WILL BRING MORE OF THESE PROFESSIONS INTO THE MARKET

19 MILTON FRIEDMAN ACCOMPLISHMENTS: ECONOMIC ADVISOR TO NIXON & REAGAN AND TO BRITISH PRIME MINISTER MARGARET THATCHER

20 BIBLIOGRAPHY


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