Presentation on theme: "Objective 2.04 Understand the United States’ economic system."— Presentation transcript:
1Objective 2.04 Understand the United States’ economic system. 2.04 U.S. EconomyObjective 2.04 Understand the United States’ economic system.
2Mixed EconomyA combination of a free enterprise (or market) and a command economy.Privately owned businesses and government both play important roles.The marketplace produces:carshealth caretechnologyfood (with some government regulations)The government provides:defenseeducation
4Market Economy Characteristics Private property ownership.Freedom of enterprise and ChoiceMotive of self-interestCompetitionSystem of markets and pricesThe market addresses consumer wants
5Market Economy Advantages Individuals can own businesses and resources Individuals can buy and sell goods and servicesCompetition in the market leads to greater choicesConsumers play a great role in the economy
6Market economy Disadvantage The critical role of the consumer in the market can create a tremendous divide between the poor and the wealthy
8Limited GovernmentThe 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)
9The government provides some services to take care of people’s needs Highways--roads and other transportation servicesSchools and other public education servicesSocial SecurityMedicareDefense and public safety
10Command Economy Advantages Consumers have some protection in the marketplaceEssential services are provided for citizens
11Command Economy Disadvantages Citizens have to pay taxes so the government can provide servicesSome think there is too much government control in the marketplace
12United States’ Economy Summary 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.Largest national economy in the worldA mixed economyCorporations and other private firms make the majority of microeconomic decisions.