The MIXED economy

Objectives:  Identify key terms that describe capitalism and mixed economies  Describe the role of the government in a free enterprise economy

Mixed Economies Chapter 2 Lesson 3 (most countries in the world)

Socialism and Capitalism Combined Gov’t provides basic needs for its people: Education Transportation and roads Health care Negative: Higher taxes

Different names for the US economy  A market economy may be referred to capitalist (where people own the 4 factors)  **Mixed free enterprise** (some gov’t interference)

Parts of chapter 3

5 characteristics of a Modified Free Enterprise Economy  1. Economic Freedom –Freedom to choose  2. Voluntary Exchange –Buyers & sellers freely make transactions  3. Private Property Rights –People may own and control their possessions as they wish

 4. Profit Motive –Profit: better off at the end then at the beginning –Profit motive: incentive for people to work harder  5. Competition –Struggle among sellers to attract customers

4 Roles of Government  1. Protector –Enforces laws  Like false advertising, unsafe food & goods etc.  2. Provider and Consumer --education, public services, defense, welfare, parks etc.

 3. Regulator –Preserves competition  4. Promoter of National Goals –7 national goals

Review Assignment  Page 67  # 1, 2, 3, 10, 11, 12  Page 95  # 3, 7