Limited government rules our gov is limited to Protecting property and contract

Limited government rules our gov is limited to

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Limited government: rules our gov is limited to Protecting property and contract rights Promoting the general welfare Preserve consumers and workers and the environment Stabilize the economy laissez-faire: the principle that government should not interfere with the workings of the economy; a French term meaning “let them do” contract: an agreement between a buyer and a seller property rights: the rights of those who own land, buildings, or other goods to use or dispose of their property as they choose intellectual property: creations of the mind that have commercial value, such as inventions and works of art patent: a legal protection that gives inventors the sole right to make, use, or sell their inventions for a fixed number of years copyright: a legal protection that gives creators and publishers of books, music, software, and artistic works the sole right to distribute, perform, or display that work profit: the money earned by a business after subtracting its operation costs profit motive: the desire to make a profit Economic Systems Notes What is made? How it’s made? Who get what’s made? 6 economic goals for Economic systems 1. Economic Freedom- the freedom for consumers buy what u want, producers to make what they want, and have what job you want is how the gov interferes with for how much freedom there is 2. Economic equity- what is fair or unfair (distribution of wealth) giving to the haves to the have not, one of the most debated ,opportunity or outcome 3. Economic Efficiency-specializing in doing what you do the best and trade for the rest A.K.A Comparative Advantage, Technical efficiency: minimizing input to maximize output 4. Economic Security- protecting citizens against economic risk ex. Unemployment, accidents, old age, business failure they do this by government insurance programs 5. Economic Stability- absence of large swings up & down in prices Inflation: cost of goods go up and $ goes down Deflation: cost of goods go down , little inflation is good but not spikes 6. Economic Growth-a condition in which an economy is expanding and producing more and better goods. Too much growth too fast isn’t good. Slow steady growth is good GDP(Gross Domestic Product) -the sum of all goods and services made in a country
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GDP down recession (Contracting) GDP up expanding long lasting recession is called a depression Full employment - When all of the economy's resources are used to it’s fullest considered 4-6% unemployment -Labor force is everyone who has a job or looking for a job Traditional economic system- things are passed on from gen to gen of the way of doing things Command economic system -the government owns and decides on everything Capital gives rise to Socialism and communism Karl Marx is the father of Socialism and communism Socialism- the gov has a larger role in the people's lives and the gov gives you stuff but you don’t own very much Communism - you don’t anything alone but everyone owns everything (everything is equal)
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  • Fall '16
  • Craig Zupi
  • Capitalism, Economic system, Planned economy

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