2 Economic Goalscriteria for evaluating the performance of the economic system (or parts of the system) and for examining the usefulness of new as well as existing programs.
3 Economic FreedomFreedom from government intervention in the production and distribution of goods and services
4 Economic Growth increase in the productive capacity of the economy Innovation that leads to growth, and economic growth leads to more material possessionsStandard of LivingLevel of economic prosperity, measured by material well-being
5 Efficiencyinsuring optimal utilization of scarce resources; prevention of waste of the nation’s resources; and getting the most out of available resourcesMaking the most of resourcesWasting is not in a society’s self interest
6 Equitypeople in the society consider the distribution of resources and wealth to be fair
7 Full Employmenta country’s resources – including workers and capital – are utilized to capacity (Unemployment no higher than natural unemployment rate of about 5%)
8 Securityprotection against economic risks (e.g. unemployment, destitution in old age, business failure, bank failure, drastic price changes)a. We want to know that goods and services (payments too) will be availableb. Safety NetsGovernment programs to protect people experiencing unfavorable economic conditions
9 Stability prices do not fluctuate rapidly little or no inflation no deflation.