-another name: Capitalism
-closest thing to market economy
How does the US economy answer the 3 economic questions?
-individuals decide what to produce and how to produce it, and what they want to buy
-supreme court decides what we can and can't do
Characteristics:
-private property
-freedom of choice
-profit
-competition
Pros/Cons:
Pros:
-individual freedom
- free trade increases sales and profits for the U.S. businesses, thus strenghtening the economy
- free trade creates U.S. middle class jobs over the longterm
-you can choose your own career
-freedom of speech
Cons:
-high unemployment rate (9.1%)
- free trade has caused more U.S. job losses than gains, especially for higher-wage jobs
- many free trade agreements are bad deals for the U.S.
Examples:
-if customers are not satisfied with one company's offerings, they will look for another choice
US ECONOMY
-another name: Capitalism-closest thing to market economy
How does the US economy answer the 3 economic questions?
-individuals decide what to produce and how to produce it, and what they want to buy-supreme court decides what we can and can't do
Characteristics:
-private property-freedom of choice
-profit
-competition
Pros/Cons:
Pros:
-individual freedom- free trade increases sales and profits for the U.S. businesses, thus strenghtening the economy
- free trade creates U.S. middle class jobs over the longterm
-you can choose your own career
-freedom of speech
Cons:
-high unemployment rate (9.1%)- free trade has caused more U.S. job losses than gains, especially for higher-wage jobs
- many free trade agreements are bad deals for the U.S.
Examples:
-if customers are not satisfied with one company's offerings, they will look for another choice