Download Characteristics of the US Economy

Characteristics of the
U.S. Economy
The United States economy is primarily a
free market economy; but because there is
some government involvement it is
mixed economy.
characterized as a _______
The government works to protect consumers and
businesses.
Sometimes, they may seem to be too
protective:
Free Markets
Buying and
The U.S. generally has a free market policy. __________
selling are allowed to happen ___________
without much
___________
government
interference from the __________________.
Businesses in the U.S. are operated in order to
profit
make a _______.
money left over after all ____________
expenses have
Profit is the _________
paid
been _______.
incentive for business to exist.
This is the ____________
Slappy's Ice Cream Shop
Taxes
15% 12%
Rent
25%
20%
What is Slappy’s biggest expense?
Salaries
Supplies
28%
What percentage of his earnings does
Slappy keep as profit?
Profit
What could Slappy do to increase his
profits?
The government encourages
______________
between businesses.
competition
rivalry between businesses for the same
There is __________
quality and lower
______________,
resulting in better __________
customers
prices
___________.
How does competition benefit these consumers?
Private Property
Individuals and ______________
businesses can own the means of
_____________
production and ___________
private property.
______________
Government is owner and decision
maker for the public sector.
(roads, courts, schools…)
Individuals and businesses are owners and
decision makers for the private sector.
(houses, shops, factories…)
Consumer Sovereignty
Consumers determine what goods and services are
______________
buy
produced by what they ________.
____________
Businesses produce
demand
goods that meet ___________.
High demand
Low demand
Many products are presented to consumers, but consumer
sovereignty determines which ones will be successful.
“If we don’t buy it, they won’t keep making it.” – Mr. Knoche
Government Influence
protect
regulates businesses to _____________
Government ____________
promote competition.
citizens and _____________
Government intervenes in a market economy
when the perceived benefits of a government
policy outweigh the anticipated costs.
What do you think is the opinion of this artist?