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Essential Question:Essential Question: Identify the 6 main goals of the U.S.

economy, Create a “real-life” example that demonstrates how these goals can conflict with each other (Be sure to use two specific goals)

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How nations decide how to use scarce How nations decide how to use scarce resources: resources: Households, businesses, and the government

work together to set goals. These goals focus on addressing different

needs.Sometimes two or more of these goals

require the same resources (making it impossible to do both equally well)

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6 major goals of the U.S. Economy: 6 major goals of the U.S. Economy: #1 Economic Freedom/#2 Efficiency #1 Economic Freedom/#2 Efficiency Freedom- the right for consumers to choose

how to answer the 3 basic economic questions.

Efficiency- Ensuring that resources are not wasted and that the product produced with the resources is worth more than the resources consumed.

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#3 Economic Equity #4 Security #3 Economic Equity #4 Security Equity- Ensuring our economy works TOWARD

being fair in terms of allocating resources and addressing needs of society

EQUAL=Fair, EQUITY=Working toward fairnessSecurity- the goal of preventing the members of a

society from poverty, business and bank failures or other crises that would harm the overall economy.

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#5 Economic Stability #5 Economic Stability Stability- This goal addresses two concerns, 1.)

trying to establish full employment or keep as many of the citizens employed as possible AND

2.) trying to limit the amount of change in the average prices of goods and service in the economy to protect those with limited or fixed incomes.

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#6 Growth#6 GrowthThis goal focuses on increasing the amount

of goods and services produced by each worker in an economy to address the needs of an expanding population ie: make more food than just what you need

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Why economic goals sometimes Why economic goals sometimes conflict:conflict:differences in the goals of various

socioeconomic groups

Poor people want security, Rich want freedomGovt. is democratically elected and responds

most to the needs of those who VOTE

Guess what this means YOU should do?

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