Presentation is loading. Please wait.

Presentation is loading. Please wait.

Chapter 2.4: Mixed Economies. Slide 2Copyright © Pearson Education, Inc.Chapter 2, Section 4 Bell Ringer Discussion On a piece of paper, list three examples.

Similar presentations


Presentation on theme: "Chapter 2.4: Mixed Economies. Slide 2Copyright © Pearson Education, Inc.Chapter 2, Section 4 Bell Ringer Discussion On a piece of paper, list three examples."— Presentation transcript:

1 Chapter 2.4: Mixed Economies

2 Slide 2Copyright © Pearson Education, Inc.Chapter 2, Section 4 Bell Ringer Discussion On a piece of paper, list three examples of ways in which the U.S government or state government provides goods/services or regulates how goods/services are provided. Share What would happen if those were privately owned? Why do you think our gov’t intervenes in the market in instances we stated?

3 Slide 3Copyright © Pearson Education, Inc.Chapter 2, Section 4 The Rise of Free Markets Even free market thinkers like Adam Smith recognized the need for a limited degree of government involvement in the economic marketplace. In a mixed economy, the market is free but has a certain degree of government control

4 Slide 4Copyright © Pearson Education, Inc.Chapter 2, Section 4 Introduction What are the characteristics of a mixed economy? –A mixed economy is characterized by: A market-based economy with some government intervention Government helps societies meet needs that would be too difficult for them to meet under a totally free market economy, such as education Government protects property rights and ensures that exchanges in the marketplace are fair

5 Slide 5Copyright © Pearson Education, Inc.Chapter 2, Section 4 The Rise of Free Markets Laissez faire Belief that gov’t generally should not intervene in the marketplace Since Adam Smith’s time, government intervention in the market has increased.

6 Slide 6Copyright © Pearson Education, Inc.Chapter 2, Section 4 The Rise of Free Markets, cont. –What is one reason the government plays a role in the economy? –The government: Provides national defense and public education Protects private property Ensures fair exchanges in the marketplace –(Laws require businesses to give honest information to consumers)

7 Slide 7Copyright © Pearson Education, Inc.Chapter 2, Section 4 Reebok Pays $25 Million to Settle FTC Claims of False Ads for Toning Shoes

8 Slide 8Copyright © Pearson Education, Inc.Chapter 2, Section 4 How do we know? Car’s horsepower?

9 Slide 9Copyright © Pearson Education, Inc.Chapter 2, Section 4 The Rise of Free Markets Mixed economy Market-based economic system in which the gov’t is involved to some extent. Since Adam Smith’s time, government intervention in the market has increased.

10 Slide 10Copyright © Pearson Education, Inc.Chapter 2, Section 4 Circular Flow Model of a Market Economy

11 Slide 11Copyright © Pearson Education, Inc.Chapter 2, Section 4 Circular Flow Model of a Mixed Economy

12 Slide 12Copyright © Pearson Education, Inc.Chapter 2, Section 4 Comparing Mixed Economies Most modern economies are mixed economies. –The figure below shows a continuum of mixed economics in today’s world. –Why is China a little bit farther to the right on the diagram below than Cuba?

13 Slide 13Copyright © Pearson Education, Inc.Chapter 2, Section 4 North Korea and China China, is closer to the center of the because they are going through an economic transition toward privatization of state-owned firms.

14 Slide 14Copyright © Pearson Education, Inc.Chapter 2, Section 4 Hong Kong- All the way on the right!?!?! Hong Kong represents one of the world’s freest markets. –The government protects private property and rarely interferes in the free market, aside from establishing wage and price controls on rent and some public services. Wait!? Isn’t Hong Kong part of China? –It is. It operates under a “One country, two systems” policy. Hong Kong has it’s own money Need a visa to enter China from Hong Kong

15 Slide 15Copyright © Pearson Education, Inc.Chapter 2, Section 4 Head-to-Head Battle pg 42 Helmet Makers Doctors State Gov’t Anti-helmet lobbyists Once in groups, use the article and internet to support your belief! Are you for or against helmet laws? Assume we live in PA Map

16 Slide 16Copyright © Pearson Education, Inc.Chapter 2, Section 4 Mixed Economies Privatization Gov’t sells business/service to individuals and allows them to compete in the marketplace. Economic transition- period of change when a nation moves from one economic system to another “8 Ways Privatization Has Failed America” –On my Wiki, skim it, discuss

17 Slide 17Copyright © Pearson Education, Inc.Chapter 2, Section 4 So what’s our economy!? Market economy by definition – “an economy in which the resources are owned and controlled by the people of the country” The United States is a mixed economy whose foundation is the free market. It is characterized as a free enterprise system.

18 Slide 18Copyright © Pearson Education, Inc.Chapter 2, Section 4 Mixed Economies Free enterprise system Economic system characterized by private OR corporate ownership of goods. In a F.E.S, investments in firms are made in a free market by private decision…gov’t has no say!


Download ppt "Chapter 2.4: Mixed Economies. Slide 2Copyright © Pearson Education, Inc.Chapter 2, Section 4 Bell Ringer Discussion On a piece of paper, list three examples."

Similar presentations


Ads by Google