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:
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
ADVANTAGESDISADVANTAGES FREEDOMSGOVERNMENT REGULATIONS BUY WHAT WE WANTLIMITED RESOURCES NO LIMITS TO WHAT YOU CAN HAVE TAXES WELFARE SYSTEMUNEQUAL DISTRIBUTION OF WEALTH
Two major trends in modern economies: 1. Many economies moving away from Command Systems and privatizing business. 2. Globalization by getting foreign investors.
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
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
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
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
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
GOALS OF THE FREE ENTERPRISE SYSTEM: 1.) Maintain economic freedom!