Goals and Values of Economic Systems

     An economic system is the method a society uses to produce goods and services. the type of economic system that exists in each nation independent upon its goals and values.

Economic Efficiency

  • scarcity forces societies to maximize the resources they have to work with

End result-  Society must be able to deliver and distribute goods to people

Economic Freedom

  • in some nations, such as North Korea, the government limits the income of workers and forbid certain purchases and possessing certain items
  • others allow people to persue freedoms and their interests

Economic Security and Predictability

  • citizens want to know what to expect and rely on from their government
  • governments employ a safety net to aid citizens who face unemployment, natural disasters, unfavorable conditions, and Social Security

Economic Equity

Governments must answer:

  • How are we going to divide the economy?
  • What is fair and equal?
  • What jobs are valued by society?
  • What jobs should get more pay?

Economic Growth and Innovation

  • standard of living increases as the economy increases
  • innovation occurs in differentiated economies
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