1 / 12

Economics: Chapter 2: Economic Systems and Decision Making

Economics: Chapter 2: Economic Systems and Decision Making. Chapter 2: Economic Systems and Decision Making. An Economic System is a set of rules that govern WHAT goods and services to produce, HOW to produce them, and for WHOM they are produced. Chapter 2: Economic Systems and Decision Making.

Mercy
Download Presentation

Economics: Chapter 2: Economic Systems and Decision Making

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Economics: Chapter 2:Economic Systems and Decision Making

  2. Chapter 2: Economic Systems and Decision Making • An Economic System is a set of rules that govern WHAT goods and services to produce, HOW to produce them, and for WHOM they are produced.

  3. Chapter 2: Economic Systems and Decision Making Economic Systems

  4. Chapter 2: Economic Systems and Decision Making

  5. Chapter 2: Economic Systems and Decision Making

  6. Chapter 2: Economic Systems and Decision Making Evaluating Economic Performance • The social and economic goals of U.S. society includes: • Economic Freedom • Economic Efficiency • Economic Equity • Economic Security • Full Employment • Price Stability • Economic Growth

  7. Chapter 2: Economic Systems and Decision Making • When goals conflict, society evaluates the costs and benefits of each in order to promote one goal over another; many election issues reflect these conflicts and choices. • People’s goals are likely to change in the future, as our economy evolves.

  8. Chapter 2: Economic Systems and Decision Making Capitalism and Economic Freedom • Capitalism is a competitive economic system in which private citizens own the factors of production.

  9. Chapter 2: Economic Systems and Decision Making 5 Characteristics of Capitalism (Free Enterprise) System • 1. Economic Freedom • 2. Voluntary Exchange • 3. Private Property Rights • 4. Profit Motive • 5. Competition

  10. Chapter 2: Economic Systems and Decision Making • The entrepreneur is the individual who organizes land, capital, and labor for production in hopes of earning a profit. ** The profit motive is the driving force in capitalism. • In Capitalism, firms are in business to make a profit. To do this they must offer products consumers want at competitive prices.

  11. Chapter 2: Economic Systems and Decision Making • Consumer Sovereignty states that the consumer is the one who decides WHAT goods and services to produce. • The national government plays the role of protector, provider, and consumer, regulator, and promoter of economic goals. • The U.S. has a mixed economy or a modified private enterprise economy, in which its citizens carry on their economic affairs freely but are subject to some government intervention and regulation.

  12. Chapter 2: Economic Systems and Decision Making The End

More Related