2.2 Evaluating Economic Performance
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Transcript of 2.2 Evaluating Economic Performance
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2.2 EVALUATING ECONOMIC
PERFORMANCE
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Objectives
After this section, you will be able to:
Describe the basic economic andsocial goals used to evaluateeconomic performance.
Evaluate the trade-offs among
economic and social goals.
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Introduction
Every economic system has goals (suchas financial security and freedom) tocarry out economic choices.
Goals are important because they serveas benchmarks that help us determine ifthe system meets mostif not allof ourneeds.
If the system falls short, then we maydemand laws to change the system untilthe needs are met.
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Economic and Social Goals
1. Economic freedom - freedom forpeople to make their own economicdecisions. Highly valued goal in theU.S.
WHATCAREER TO
HAVE?
WHAT COMPANYTO WORK FOR?
WHAT TOBUY?
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2. Economic efficiency- resources areused wisely and benefits gained aregreater than the costs incurred.
Economic and Social Goals
What effect does efficiency have onthe number of goods available?
Higher efficiency produces a largernumber of goods.
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Economic and Social Goals
3. Economic equity- social goal thatexplains why so many people supportlaws against wage and job
discrimination. Equal pay for equalwork!
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4. Economic security- social goal thatresults in programs to help support theill, the elderly, and workers who have
lost their jobs. (ex. Social Security Act)
Economic and Social Goals
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5. Most economic systems strive for fullemployment, or providing as manyjobs as possible.
Economic and Social Goals
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7. Economic growth the nationspopulation is likely to increase,economic growth is necessary to meet
everyones needs.
Economic and Social Goals
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Trade-Offs Among Goals
When goals are at odds, people mustcompare costs to benefits beforeresolving the conflict.
Most of the time, people, businesses, andgovernment are able to work outconflicts among goals.
The flexibility of the American economicsystem allows choices and compromises.
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Debates in Economics
Should the minimum wage be increased?MOVE YOUR DESKS INTO GROUPS OF 4.
Turn to Pg. 30 in your text.
1. AnswerAnalyzing the Issue #1-22. In your group, decide which position on
minimum wage to support.
Sketch a visual advertising campaignpromoting the position you support. Ideas include posters, bumper stickers, web
banners, T-shirt logos, billboard, mugs, etc.
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1. Name of Goal.2. Its importance.3. What would happen if
goal was not met.4. Illustrations.
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Group Discussion Question
In your opinion, which of theseeconomic goals is most important?Why? Support your choice byexplaining what would happen if thegoal was not met.
