American Free Enterprise

I. The benefits of free enterprise Basic Principles Profit motive Open opportunity Private property Freedom to buy and sell Free contract Voluntary Exchange

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

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.

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

Picture Pages (You have five minutes to complete) Profit Motive Open opportunity Legal equality Private property rights Free contract Voluntary exchange Interest group Patriotism Eminent domain Public interest Public disclosure laws Pages 49-55

Read pp. 62-67 Answer 1,3,4,5,6,7 Keep in your notebook

Picture Pages Free enterprise Voluntary exchange Private property rights Profit Profit motive Competition Consumer sovereignty Mixed or modified free enterprise economy pp. 48-53

Economic and Social Goals Economic Efficiency Economic Equity Economic Security Full Employment Economic Growth Economic Freedom

To Do… Read 48-53 Answer numbers 1-8 and 17-20 on page 56

Section 3.3 + 3.4 Read over Define: Public good Public sector Private sector Infrastructure Free Rider Poverty threshold Welfare Cash transfers In-kind benefits Grant

Open-Notebook Quiz What are the four principles of America’s free enterprise system? Please define profit motive. 3. Please define competition 4. Please define consumer sovereignty 5. List four of the six goals of free enterprise. 6. Describe main characteristics of a traditional economy.

Open-Notebook Quiz What are the four principles of America’s free enterprise system? Please define eminent domain. 3. Legal equality Private property rights Interest group 6. Public disclosure laws 7. Patriotism 8. Why are public goods examples of market failures? 9. List one negative externality 10. List one positive externality.

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

Welfare Began under FDR during the Great Depression Under attack in the 1980s Redistribution discourages productivity 2000s – under debate today

Welfare Cash Transfers In-kind Benefits Social security Unemployment insurance Workers’ Compensation In-kind Benefits Food stamps Subsidized housing Education Medical benefits

With a partner Complete the DBA on page 75

Pages 76 – 77: Partner Work What 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

pp. 78 - 79 What 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?

pp. 80-81 What 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?