Thursday, September 10, 2015 Objective:  Students will be able to compare the free enterprise system, socialism, and communism using the basic characteristics of economic systems. Purpose: Knowing how an economic system operates will help each of you perform certain roles effectively and how they impact others.

Reasons for Mixed Economies some needs of modern society would be difficult to meet in the marketplace (building of highways, national defense) governments supply some needs in order to achieve the goal of equity and ensure that all members of society can benefit governments need to set rules so groups and individuals are not taken advantage of

Characteristics of a Mixed Economy Strong regulations and oversight Welfare system Regulations are in place to protect consumers Essential industries (healthcare, utilities, transportation) are owned by the government

The American Economy The American government keeps order, provides vital services, and promotes the general welfare The marketplace operates with a limited degree of government regulation and some limits government places on business use of private property

Role of Government in Our Economy Some Americans want greater regulation of employment practices to protect workers or of business processes to protect consumers or the environment Other Americans call for relaxation of existing regulations, arguing that government rules drive up the operating and administrative costs of businesses, making them less efficient and less competitive

Summary Questions Why do mixed economies exist? What are some of examples of roles the government plays in the circular flow model? How is our economy an example of a mixed economy? What do the American people generally think about our mixed economy?