Presentation on theme: "Objective 2.04 Understand the United States’ economic system."— Presentation transcript:
1 Objective 2.04 Understand the United States’ economic system. 2.04 U.S. EconomyObjective 2.04 Understand the United States’ economic system.
2 Mixed EconomyA combination of a free enterprise (or market) and a command economy.Privately owned businesses and government both play important roles.The marketplace produces:carshealth caretechnologyfood (with some government regulations)The government provides:defenseeducation
3 United States’ Mixed Economy Free Enterprise/Market Economy
4 Market Economy Characteristics Private property ownership.Freedom of enterprise and ChoiceMotive of self-interestCompetitionSystem of markets and pricesThe market addresses consumer wants
5 Market Economy Advantages Individuals can own businesses and resources Individuals can buy and sell goods and servicesCompetition in the market leads to greater choicesConsumers play a great role in the economy
6 Market economy Disadvantage The critical role of the consumer in the market can create a tremendous divide between the poor and the wealthy
8 Limited GovernmentThe government helps protect people by being a body that monitors public safety through regulatory agencies such as:Food & Drug Administration (FDA)Occupational Safety and Health Administration (OSHA)
9 The government provides some services to take care of people’s needs Highways--roads and other transportation servicesSchools and other public education servicesSocial SecurityMedicareDefense and public safety
10 Command Economy Advantages Consumers have some protection in the marketplaceEssential services are provided for citizens
11 Command Economy Disadvantages Citizens have to pay taxes so the government can provide servicesSome think there is too much government control in the marketplace
12 United States’ Economy Summary Government has a minimal role in the domestic economy.Business firms in the U.S. have much less regulation than those in many other nations.Largest national economy in the worldA mixed economyCorporations and other private firms make the majority of microeconomic decisions.