1. Chapter 2 Review
Economic systems

2. Economic & Social Goals
Every economic system has goals
Work to measure if a system is meeting the peoples needs
If needs are not met people may demand laws to make changes.

3. Economic & Social Goals
Economic freedom
Economic efficiency
Economic Equity – “lemon laws”
Economic Security
Full employment
Stable prices
Economic Growth

4. Traditional Economic systems Advantages-
* people know what to make based on tradition
*for whom is decided by tradition
Disadvantages-
* new ideas discouraged
* strict social rules

5. Economic Systems Command Advantages: * can change direction quickly
* people don’t worry about where they will work/study
Disadvantages:
* doesn’t meet the demand of the consumer
* no incentive to work
* entrepreneurs not in need
Command
(controlled by the government)

6. Economic Decisions Market Advantages: * over time can adjust to change
* high level of individual freedom
* small level of gov. interference
* everyone has a say in the economy
Disadvantages:
* basic needs for everyone are not provided
* gov. needs to provided highly needed services like healthcare & education
* the unknown workers and businesses face

7. Capitalism Free enterprise economy * competition * profit motive
* private property rights
* economic freedom

8. The Entrepreneur
Organizes and manages land, capital and labor in order to gain a profit
Start up new businesses
“want to be own boss” willing to take an economic risk to make dreams a reality

9. Entrepreneurs & the economy
People benefit from new and better products
Government benefits by having higher levels of economic activity and larger taxes

10. The Consumer Determine which goods are bought and produced
Express their wants in the form of purchases
Dollars = votes

11. Role of the Government Protector Provides certain public services
Preserves competition

12. Rich in Russia
1. What advantages and disadvantages did Russians experience with a command economy? With a market economy?

13. Economic Systems Posters
Traditional
Command
Market
Explain how each system decides the
For Whom, What and How questions every economy must answer.
* Write the advantages and disadvantages of each.

14. Starbucks Video
In what ways is the creator of Starbucks an Entrepreneur?
What ideas led to the company being a success over the years?

15. Netflix Video How is the owner of Netflix's seen as an entrepreneur?
2. In what ways is the company meeting the wants of the consumer?
3. How is the company planning for the future.

16. Video Question:
How did Ben and Jerry first get the idea to form an ice cream company?
What made their ice cream different from others?
In what ways are Ben and Jerry Entrepreneurs?

17. Economic Systems Posters
Traditional
Command
Market
Explain how each system decides the
For Whom, What and How questions every economy must answer.