NaimExplain

Provide examples of how the government acts as a protector, provider and consumer of goods and services, regulator, and promoter of national goals. As a protector, the government enacts and enforces laws which can regulate businesses so products are safe, accurately advertised, and reduce environmental impact. As a provider and consumer of goods and services, the government supplies defense services and consumes products to run the nation. As a regulator, the government oversees interstate and international commerce, communications, energy, and banking. As a promoter of national goals, the government carries out the will of the people to carry out their goals of freedom, efficiency, equity, security, full employment, price stability, and economic growth.

Explain the importance of the entrepreneur in a free enterprise economy. The entrepreneur organizes and manages the other three factors of production: land, labor, and capital in order to seek the reward called profit. They take the risks to start new businesses which create new products, greater competition, more production, higher quality, and lower prices for consumers.

State how people and businesses benefit from economic freedom. Economic freedom allows people to choose their own occupation, employer and uses for their money. It allows businesses to choose where and how they produce. Economic freedom is one of the cornerstones of American society.

Explain the importance of setting economic goals. It is important to set economic goals so resources can be effectively and efficiently used to solve the problem of scarcity while meeting needs and wants. Economic goals serve as benchmarks that help people determine which economic system meets their needs.

Explain how any two of the seven major economic goals might conflict. 1. Increase in the minimum wage may increase economic equity, but that may raise unemployment and restrict employer's freedom to pay fair wages. 2. To fulfill the goal of full employment, foreign made goods may be kept out of the US, but that may work against consumers' freedom. 3. A new shopping center may be built to stimulate economic growth, but then the stability and security of smaller stores may be threatened.

Identify the objective of Social Security. Social Security is a federal program that provides disability and retirement benefits that covers most working people.

Describe the seven major economic goals upon which most Americans seem to agree. 1. Economic Freedom to make personal economic decisions. 2. Economic Efficiency to use the scarce factors of production wisely. 3. Economic Equity to ensure opportunities are just, impartial, and fair. 4. Economic Security to protect against economic adversity such as layoffs and illness. 5. Full Employment so workers earn and income for themselves and produce goods and services for others. 6. Price Stability to avoid inflation=a rise in the general level of prices and help those on fixed incomes= an income that does not increase even though prices rise. 7. Economic Growth so people can have more goods and services in the future.

Describe how a market economy, a traditional economy, and a command economy adapt to change. Traditional economies don't change much because new ways of doing things are discouraged which leads to lack of progress and lower standard of living. Command economies can change relatively swiftly. Market economies take a longer time to adapt to change.

Explain how consumers influence a market economy. In a market economy, people's decisions act as votes for a product. More "votes" show producers what goods and services to offer. Producers are always looking for goods and services that consumers will by, so consumers influence production.

List the five major weaknesses of the command economy. 1. It is not designed to meet the needs or wants of individuals; rather they must sacrifice for the good of the state 2. It lacks incentives for people to work hard 3. It requires a large decision-making bureaucracy 4. It is not flexible to deal with day-to-day problems 5. People with new ideas find it difficult to get ahead

Describe the main strength and weakness of a traditional economy. Strengths-everyone knows what role they play; life is generally stable, predictable and continuous. Weaknesses-new ways of doing things are discouraged which lead to lack of progress and lower standard of living.

Explain why economic education is important. Economic education helps people become better decision makers and it helps us understand the political and social issues operating around us.

Distinguished between product markets and factor markets. Individuals earn their income in factor markets and spend their income in product markets.

Explain why economists argue that productivity is important. In a world of relatively scarce resources, productivity is a key issue. Economies benefit when productivity increases.

Distinguish between free products and economic products. A free product is plentiful and has neither owner nor price, such as air or sunshine. An economic product is a good or service that is relatively scares and transferrable to others, such as a shirt or a haircut.

Explain the difference between a need and a want. A need is required for survival, such as food. A want is a way to express that need such as an apple or a burger that will satisfy the need for food.

Identify the economic concept illustrated by the production possibilities frontier. It is used to illustrate opportunity cost. When resources are fully used, a country can produce anywhere along its production frontier. When all resources are not fully used, the country cannot reach it potential.

Describe the nature of an opportunity cost. Opportunity cost is the cost of the next best alternative (money, time or resources) that we didn't choose in the trade-off.

Explain the meaning of a trade offs. Because time and resources are scarce, we cannot have everything we want. When we look at the options and choose one alternative over another, we have made a trade-off.

Explain why economics is considered a social science. Economics is a social science because it deals with the behavior of people as they cope with the fundamental scarcity.