Elements of the three different economic systems in one economy; the most common economic system
Market-business competition, private property, profit
Command-government regulated agencies, schools, USPS
Traditional-schools still follow an agricultural schedule
BUY WHAT WE WANT LIMITED RESOURCES
NO LIMITS TO WHAT
YOU CAN HAVE
WELFARE SYSTEM UNEQUAL
Two major trends in modern economies:
1. Many economies moving away from
Command Systems and privatizing business.
2. Globalization by getting foreign investors.
What is the difference between open opportunity and legal equality ?
Open opportunity allows people to participate in the market by free choice
What besides profit, if anything, might motivate a person to start a business?
Non profits fulfill a social need and some people create enterprises for that as well
What fads like the pet rock have you seen come and go?
• Tickle Me Elmo
• Cabbage Patch Kids
• Virtual Pets
• Beanie Babies
• Silly Bands
List and explain the legal rights built into the free enterprise system.
• Open opportunity: everyone has the ability to enter the market
• Free contract: everyone has the right to decide which contracts they enter into
• Legal equality: everyone has the same economic rights
Explain the chain and effect reactions since the mid-1990s that led to the lower book prices for American consumers.
Small book stores
Borders and Barnes
& Noble compete
Pass along major savings
Lower prices; access to everything
GOALS OF THE FREE
1.) Maintain economic freedom!
2.) Make the best use of scarce resources.
3.) The government tries to ensure that every citizen shares in the benefits.
4.) Economic stability – employment and stable prices.
5.) Economic security
6.) Economic growth
CAPITALISM AND FREEDOM
FREE TO CHOOSE
BRIGHT PROMISES, DISMAL
ECONOMISTS PROTEST www.sodahead.com
HIS BELIEFS ON GOV’T. ROLE:
MARKET SHOULD BE FREE TO
OPERATE IN ALL FIELDS &
MEDICINE), CUTTING BACK
ON REGULATIONS www.another-green-world.blogspot.com
BELIEFS ON LICENSING:
LOWERING THE LICENSING
STANDARDS WILL BRING
MORE OF THESE
PROFESSIONS INTO THE
ECONOMIC ADVISOR TO
NIXON & REAGAN AND TO
BRITISH PRIME MINISTER
MARGARET THATCHER www.kitmantv.blogspot.com