The Economy

1. The Economy Ch. 2 Sec. 3 Pp. 41-43

2. The American Economy • Economy – system for producing and distributing goods and services to fulfill people’s wants • Consumer – uses goods and services • Most people are both consumers and workers • Market - where we exchange goods and services • Price – what you pay for goods and services

3. American Economic Freedoms • Buy and sell • Compete • Own property • Choose an occupation • Make a profit

4. America’s Economy and You • Buyers and sellers meet face to face in stores • We are workers and consumers • Freedom is the cornerstone of our economy • You have the freedom to make choices • Rules of our economy based on idea of fairness

5. Questions • Most people in our economy are both consumers and • a. producers. • b. workers. • c. sellers. • d. buyers.

6. Questions • What value forms the cornerstone of the American economic system? • a. justice • b. profit • c. freedom • d. equality

7. Questions • In our economic system, we can • a. make a profit. • b. own property. • c. compete with others. • d. all of the above

8. Questions • A benefit of the American economy is that people can • a. have any job they want. • b. have lots of money. • c. buy anything they want. • d. pursue a chosen lifestyle.

9. Questions • The American economic system is based on freedom and • a. fairness. • b. patriotism. • c. exchange. • d. diversity.