2 I. The benefits of free enterprise Basic PrinciplesProfit motiveOpen opportunityPrivate propertyFreedom to buy and sellFree contractVoluntary 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 MotiveOpen opportunityLegal equalityPrivate property rightsFree contractVoluntary exchangeInterest groupPatriotismEminent domainPublic interestPublic disclosure lawsPages 49-55
9 Economic and Social Goals Economic EfficiencyEconomic EquityEconomic SecurityFull EmploymentEconomic GrowthEconomic Freedom
10 To Do…Read 48-53Answer numbers 1-8 and on page 56
11 Section 3.3 + 3.4 Read over Define: Public good Public sector Private sectorInfrastructureFree RiderPoverty thresholdWelfareCash transfersIn-kind benefitsGrant
12 Open-Notebook QuizWhat are the four principles of America’s free enterprise system?Please define profit motive.3. Please define competition4. Please define consumer sovereignty5. List four of the six goals of free enterprise.6. Describe main characteristics of a traditional economy.
13 Open-Notebook QuizWhat are the four principles of America’s free enterprise system?Please define eminent domain.3. Legal equalityPrivate property rightsInterest group6. Public disclosure laws7. Patriotism8. Why are public goods examples of market failures?9. List one negative externality10. 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 1980sRedistribution discourages productivity2000s – under debate today
18 Pages 76 – 77: Partner WorkWhat 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 ppWhat 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 ppWhat 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?