1. Chapter 3 : Lesson 3 Evaluating Economic Performance

2. Essential Question:
Why might our economic goals change over time?

3. Minimum Wage: lowest legal wage that can be paid to most workers

5. Fixed Income : income that does not increase over time

6. Medicare : federal health insurance program for senior citizens, regardless of income

9. Inflation : rise in the general level of prices

11. 7 Economic Goals

12. 1. Economic Freedom Freedom to make your own economic decisions
Allowing individuals to make economic choices about
Earning income
Owning property
Purchasing goods
and services

13. 2. Economic Efficiency
Maximizing output of goods and services from the resources available

14. 3. Economic Equity Strong sense of justice, impartiality and fairness
Dividing resources in a way that is considered fair

15. 4.Economic Security and Predictability
Assuring people that goods and services will be available
Providing aid for retirement and in difficult times (social Security, Unemployment, Welfare)

17. 5. Full Employment
Economic system should provide as many jobs as possible
No job = people can’t support themselves/family, nor can they produce goods & services for others
Desirable unemployment rate = 4% - 5%

18. 6. Price Stability
Stable prices help avoid inflation (a rise in the general level of prices)
Stability makes budgeting easier & adds a degree of certainty about the future

19. 7. Economic Growth
Standard of living—level of econ. well-being of people
Necessary to provide more jobs and income for people

20. Resolving Trade-Off Among Goals
#Trade-offs Necessary
Some goals mutually conflict
Can’t have full economic freedom and full economic security or equity
# When goals are at odds, people must compare costs to benefits before resolving #the conflict.
#The flexibility of the American economic system allows choices and compromises.

21. Review Question:
Chapter 3 : Lesson 3
Read pages and answer Review Questions on page 91. Hand in Google Class Room.

22. Make a crossword puzzle
Voluntary Exchange
Profit Motive
Mixed Economy
Consumer Sovereignty
Minimum Wage
Social Security
Inflation
Fixed Income
Incentives
GDP
Competition
Price Stability
Economic Freedom
Economic Equity