PPT-Roles of Government in a Market Economy

SSEF5 Overview Government has an active role in establishing a framework or rules of the game in economic life In the United States this activity involves Preserving and fostering competition. The Human World. Section . 3. Political & Economic Systems. Features of Government. Today the world includes nearly 200 independent countries that vary in size, military might, natural resources, and world influence. Each country is defined by characteristics such as territory, population, and sovereignty, or freedom from outside control. These elements are brought together under a government. A government must make and enforce policies and laws that are binding on all people living within its territory.. In every transaction, the buyer and seller consider only their . self-interest. , or their own personal gain. Self-interest is the motivating force in the free market. . Producers in a free market struggle for the dollars of consumers. This is known as . Government Intervention. In a market economy, individuals (businesses, corporations, etc) , along with the forces of supply and demand, answer the basic problem of scarcity.. However, there are many cases in free market economies where the government has chosen to become involved in the economy.. SSEF5 The student will describe the roles of government in a market economy. . a. Explain why government provides public goods and services, redistributes income, protects property rights, and resolves market failures. . Joseph E. Stiglitz. Beijing. March 2006. Objectives of Social Policies. Redistribution. Enhancing opportunity. Access to education. Access to finance. Partially reflections of market failure. Improving Outcomes. and market failure. In this theme, students will consider how markets work, looking at how supply and demand interact to allocate resources in local, national and international markets. They will learn how to apply supply and demand analysis to real-world situations and be able to offer explanations of consumer behaviour. This will involve looking at both how consumers act in a rational way to maximise utility and how. The Evolution of Modern Liberalism . The economic conditions that made possible the immense fortunes of Frick (known for his ruthless business practices) and other robber barons like him were largely due to the adoption and the principles of economic liberalism in the United States, Canada, Great Britain, and other industrialized countries near the beginning of the 20. =. . Important terms. Sovereignty. is the idea that a territory . or region . has supreme authority over itself. Autonomy. is the idea that a person, state, territory, etc. can make decisions for itself, without outside interference. Chapter 16. Section . 1: . Government . Intervention in the Economy. Our U.S. economy is a . capitalistic. economy. . Private . citizens . own. and use the factors of production to seek a profit.. and market failure. In this theme, students will consider how markets work, looking at how supply and demand interact to allocate resources in local, national and international markets. They will learn how to apply supply and demand analysis to real-world situations and be able to offer explanations of consumer behaviour. This will involve looking at both how consumers act in a rational way to maximise utility and how. Joseph E. Stiglitz. Beijing. March 2006. Objectives of Social Policies. Redistribution. Enhancing opportunity. Access to education. Access to finance. Partially reflections of market failure. Improving Outcomes. Scarcity – The . basic economic problem that arises because people have unlimited wants but resources are limited. The government can protect a free market economy by maintaining a stable currency, tax breaks to proprietorships, law and order…. Spend tomorrow pulling weeds from your yard for free?. What if someone paid you $500 for pulling weeds tomorrow?. What is the difference?. The Economy . You’ve probably heard people say things like, “The economy is down,” or, “Such-and-such would be good for the economy.” Maybe you’ve figured out that the economy has something to do with money. But what is this big, scary “economy” everyone’s always worried about? And how can you avoid it? . How do I differentiate between the different types of economies?. What is the most effective economy system? Explain.. Essential Question. THOUGHT QUESTION:. ARE THERE STRENGTHS AND WEAKNESSES IN EACH ECONOMIC SYSTEM?.