1 Chapter 3 “American Free Enterprise” Section 1 “Benefits of Free Enterprise” PREVIEW OBJECTIVES (pp. 40)Describe :Explain:Identify:Describe:SECTION FOCUS American free enterprise is based on the principles of profit motive, voluntary exchange, private property rights, competition, and freedom for producers & consumers. The U.S. Constitution supports the free enterprise system by guaranteeing private property rights, the right to make contracts, and freedom from unfair taxation.
3 Quick Write – “Define Land of Opportunity;” and Provide examples of family or community leaders who started up small businesses. COPY: Figure 3.2 (pp. 55) Major Federal Regulatory Agencies
4 Section 2 “Promoting Growth and Stability” PREVIEW OBJECTIVES (pp. 57)Explain:Analyze:SECTION FOCUS The government attempts to stabilize business cycles, aids the growth of the economy, and encourages technological innovationKEY TERMS:Macroeconomics:Microeconomics:Gross Domestic Product (GDP):Business cycle:Work Ethic:Technology:
5 Economics - Quick Write (Ch. 3, Sect. 2 pp Economics - Quick Write (Ch. 3, Sect. 2 pp. 58) Part of the American Dream has always been for each generation to enjoy a higher standard of living than that of previous generations. This may be “unsustainable.” “How are you overcoming the barriers toward living your American Dream?”
6 Copy Figure 12.7 Tracking a Business Cycle (page 310) Section 3 “Providing Public Goods” PREVIEW OBJECTIVES (pp. 62)Identify-Analyze-Evaluate –SECTION FOCUS The government sometimes steps in to provide a shared good or resource when it would be impractical for consumers to pay individually.
7 KEY TERMS: Public good: Public sector: Free rider: Market failure: Positive Externality:Negative Externality:
8 Section 4 “Providing a Safety Net” PREVIEW OBJECTIVES (pp. 67) Summarize:Describe:SECTION FOCUS: Sometimes the United States government has to step in to create programs to aid poor, disabled, and elderly people.KEY TERMS:Poverty threshold:Welfare:Cash transfers:In-kind benefits: