1 / 9

Understanding Economic Systems and Government Intervention

Explore the various economic systems like Mixed Economy, Centrally Planned Economy, and Laissez Faire. Learn about Adam Smith's views on government intervention, private property rights, and balancing control and freedom in economic activities. Gain insights into how government interacts in the factor market by purchasing factors of production and implementing social programs like Social Security.

steven-goff
Télécharger la présentation

Understanding Economic Systems and Government Intervention

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 2 Sec 4

  2. Mixed Economy • Centrally planned Economy are cumbersome. • Traditional Economies have little potential for growth and change

  3. Laissez Faire • Gov’t generally should not intervene in the market place • Leave it alone

  4. Adam Smith • Left alone the free market would provide the greatest benefits and raise the standard of living. • Believed that there always should be a certain level of gov’t intervention • To help answer the some of the wants and needs questions.

  5. Adam Smith cont. • Some needs are met by the gov’t • Education • Walfare • Mass transit • Law enforcement • Protection of New Products • Laws to encourage competition

  6. Private Property • Property controlled by individuals/companies not by the federal gov’t • Laws protecting the property rights….

  7. Balancing control and freedom • Some goals are met by open markets and some are better off ran by the gov’t.

  8. Government in Factor Market • Gov’t purchases FOP from households • Employs 2.8 Mill people for their labor • SITE • Building roads

  9. Transferring money • Gov’t collects $ • Given back for FOP • Greatest expenditure in the USA is Social Security

More Related