Lesson 3: Evaluating Economic Performance Chapter 3: The American - - PowerPoint PPT Presentation

Lesson 3: Evaluating Economic Performance

Chapter 3: The American Free Enterprise System

Vid ideo: : American Entrepreneurs in in China

1. Constructing Arguments Why do American entrepreneurs such as the one featured in this video look to places like China to manufacture their products? 2. Explaining How is this owner utilizing the goal of economic freedom? 3. Analyzing According to the owner of Tomlin, what makes a company American? In your opinion, should our economic goals include domestic manufacturing?

Vid ideo: : American Entrepreneurs in in Chin ina (a (answers)

• 1. Constructing Arguments Why do American entrepreneurs such as the one

featured in this video look to places like China to manufacture their products?

❑ Production in China may be less expensive and lead to greater profits, or, in the case of small companies like this one, it may be a matter of infrastructure and easy access to manufacturing.

• 2. Explaining How is this owner utilizing the goal of economic freedom?

❑ He is not restricted by the government as to what he produces or where he produces it.

• 3. Analyzing According to the owner of Tomlin, what makes a company

American? In your opinion, should our economic goals include domestic manufacturing?

❑ The owner feels they are absolutely an American company because they are in charge of branding and selling their product, the manufacturer in China simply puts it together.

Economic and Social Goals

Efficiency

Equity

Growth

Security

Freedom and Stability

Full Employment

Economic Equity Full Employment Economic Freedom And Stability Economic Growth Economic Security Economic Efficiency

Economic and Social Goals

Economic and Social Goals

• The belief in economic

freedom is one of the cornerstones of American society.

• Economic efficiency is a major

goal because resources are scarce and people understand that the factors of production must be used wisely.

• Americans have a strong belief

in economic equity, which includes justice, impartiality, and fairness.

Economic and Social Goals (con’t)

• Unemployment

compensation, Social Security, and Medicare are examples of government programs to provide economic security.

• Price stability adds a degree
• f certainty to the future for

both businesses and consumers.

• Economic growth is a major

goal, and new goals develop as society evolves.

Resolving Trade-Offs Among Goals

Reso solv lvin ing Trade-Offs Among Goals ls

• Two significant issues with goals

are that they sometimes conflict and that achieving them has

• pportunity costs.
• If trade-offs are political issues,

people can help resolve them by voting.

• The economic system of the

United States is flexible enough to allow choices, accommodate compromises, and still satisfy the majority of its citizens.