Economics Chapter 2
Economics Chapter 2
Economics Chapter 2
Chapter 2
Free Enterprise and Other Economic
Systems
Efficiency
Freedom
Security
Equity
Growth
Freedom
Own property, work where we want, choice
of what we buy, etc.
Are costs that come with freedom
Possible failure
Security
Economic systems seek to reassure people that
goods and services will be available when needed
and that expected payments will arrive on time
Safety net- set of programs to protect people who
face unfavorable economic conditions
Many economies also provide basic income for
retired people
Equity or Fairness
Should everyone get the same share of
goods and services a nation produces
Growth
Standard of living- level of economic
prosperity
Comes with economic growth
Innovation
Process of bringing new methods,
products, or ideas into use
Plays large roll in economic growth
Economic freedom
Takes almost all economic choices away from producers and
consumers
Economic growth
Doesnt tend to reward innovation
No profit motive
Economic equity
Tends to be only in theory