PPT-Unit 6 Free Market and Role of Government. The existence of competition in a free market

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. How is a Centrally planned Economy Organized?. Direct contrast to free market economy. Central government answers key economic questions. Government owns factors of production, set quotas on what to produce. What key economic questions must every society answer?. What basic economic goals do societies have?. What types of economic systems exist today?. The Three Economic Questions. Every society must answer three questions:. 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 . why . the French get it all for . Free. Marie-Jos. é Montpetit, Ph.D.. Acknowledgements. Professor . Gilles . Laurent, . Télécom. -Paris . University. Professor . Jean-Pierre . Chamoux. , Paris. -Descartes . Markets. Market. - an arrangement that allows buyers and sellers to exchange things.. Markets exist because no one is self-sufficient. Each of us produces just one or a few products. Specialization. Chapter 2. Economic Systems. In this lesson, students will examine the four economic systems.. Students will be able to define the following terms:. An Economic System. Traditional Economy. Free Market Economy. 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. 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. 1964- 1982 Brezhnev Era. Very Repressive. Corruption High. Complaints against regime led to imprisonment. . Factors weakening the USSR. Afghanistan War 1979-1989.. Economic Stagnation. Corruption. 1985- 1990 Gorbachev Era. 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. A Market Economy. A Market Economy. an economic system in which private individuals own the factors of production and are free to make their own choices about production, distribution and consumption. The free-from food market registered over 5% CAGR during 2013-2018. Growth was driven in part by rising consumption of free-from gluten and dairy products beyond nutritional needs.