Ch.3+notes&hw

3.1 Notes TURNED IN PAPER 3.1 #1-5 1. the importance of a profit motive in a free enterprise system from profit motive, voluntary exchange, private property righted, and competition is that, profit motive is when, they use force that encourages people and organizations to improve their material well being. In a voluntary exchange the people may decide what agreements they want to enter to. Private property rights is the concept that people have the right and privilege to control their possessions as they wish. Competition is the rivalry among sellers to attract customers while lowering costs. 2. some examples of constitutional agreements that guarantee the underliement of the American free enterprise system are, property rights, and taxation. 3. Three benefits form the free enterprise system are, profit motive, open opportunity, legal equity, private property rights, free contract, voluntary exchange, and competition. 4. Some opportunity costs of the government would be, disclosure laws in which laws require companies to provide full information about their products. They also regulate health, safety, and well being. Another is their concerns for public people as a whole, public interests. 5. My decisions as a consumer affect and influence the economy by either inputting money into the market place or saving money and letting there be a gap of spending, in which the government wouldn't be benefiting form.

3.2 Notes
 * Maro-economics is the study of behavior and decision making of entire economies.this branch is used to view the economy as a whole.
 * Micro-economics in contrast, is the study of economic behavior and design making of small units such as individuals, families, and businesses.
 * Gross domestic profit GDP, is the total value of all final goods and services produced in a particular economy.
 * A business cycle is a period of macroeconomic expansion followed by a period of contraction.
 * Policy makers aim to pursue 3 main outcomes as they seek stability the economy, high employment, steady growth, and stable prices.
 * In order to preserve a high standard of living we must increase productivity, shifting the production outwards, how? work-ethic.
 * Work ethic is a commitment to the value of work and proposal activity.
 * Another way to increase productivity is improved technology.
 * Technology is the process used to produce a good or service.
 * Inventions are the engine of the free enterprise system.
 * Congressional authorities allowed for patents and copy rights in article 1, section 8 of the constitution.

1. Macro economics is, the study of behavior and decision making of entire economies.this branch is used to view the economy as a whole. And Micro economics in contrast, is the study of economic behavior and design making of small units such as individuals, families, and businesses. 2. The GDP allows for us to view the economy as a whole and view the total value of all final goods and services produced in a particular economy. 3. The GDP allows us to see how an economies business cycle is at and where it will be headed because it views the period of macroeconomic expansion, which is followed by a period of contraction. 4. One technology that was founded and has now allowed then united states to have a greater productivity is the light bulb. Edison gave us the opportunity to use electricity in many ways and now we can have light so that factory workers may work throughout night shifts and create more influential innovations. 5. Patents and copyrights promote innovation because it makes sure that no ones ideas are stolen and it gives the producers exclusive rights to their respected writings and discoveries. 6. Economic stability is measured through many areas an example is the gross domestic profit.

3.3 Notes
 * Government provides a public good.
 * A public good is the shared good or service for which it would be inefficient or impractical to make consumers pay individually and exclude non-payers. Dams are examples.
 * In order to help with all those findings of the government we pay taxes.
 * public goods are financed by the public sector.
 * Public sector is the part of the economy that involves the government.
 * Private escort is the part of the economy that involves the transactions of individuals and businesses.
 * Free rider is someone who would not choose to pay for a certain service or goo, but whom would get benefits of it anyways if it were provided as a public good.
 * The free rider problem is that if the government stopped collecting taxes voluntary contributions, may public services would have to be eliminated.
 * Free riders are an example of market failures.
 * Market failure is a situation in which the market does not distribute resources efficiently.
 * Successful free market operates by, Choices made buy individuals to determine what goods get made, how they get made, and who consumes the goods.
 * Externalities is the economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume.
 * Positive externalities, private sectors, example, company hires teens and teaches them skills, they get hired by another company and all ready have the skills without the other company having paid for them.
 * Negative externalities, means producing a good or service to be paid for by someone other than the producer. example, your neighbor plays guitar and you hate guitar.
 * externalities in government, would be, education, Gov.. aims to limit negative externalities such as acid rain. They use pollution permits in order to cut back and negative natural externalities such as gasoline pollution.

1. When you have public goods then you have a positive eternality because, this allows for more production of goods which will increase other different factors. 2. The free rider problem is that if the government stopped collecting taxes voluntary contributions, may public services would have to be eliminated. 3. Public sector is the part of the economy that involves the government, public goods. Private escort is the part of the economy that involves the transactions of individuals and businesses, taxes to pay for public goods. 4. The government allows some type of skill school that teaches people skills, they get hired by another company and all ready have the skills without the other company having paid for them. They help with negative externailties by, using pollution permits in order to cut back and negative natural externalities such as gasoline pollution. 5. Criminal justice system is a public good because our taxes pay for them. If we had the option people wouldn't pay for them because they would say that they never get introuble so they wouldn't need them. 6. The city should have to pay for any public location use.

3.4 Notes
 * Poverty threshold, is an economic level below that which is needed to support families or households.
 * Various federal, state, and local government programs help to raise peoples standard of living, their level of economic well-being as measured by the ability to purchase the goods and service they need and want.
 * Welfare is a general term that refers to government aid to the poor. It includes types of redistribution plans.
 * State and federal governments provide cash transfers.
 * Cash transfers are direct payers of money to eligible people., poor, disabled, and retired people.
 * The following programs are types of direct cash transfers, Temporary Assistance for Needy Families, the program aims to move people from welfare dependance to work force jobs.
 * Another cash transfer is social security, this allows for retirement income to the elderly and living expenses to disabled americans.
 * Unemployment insurance is another, it provides money to eligible workers who have lost there jobs.
 * Workers compensation is the program that provides a cash transfer of state funds to workers injured on a job.
 * In kid benefits are goods and services that are provided for free or at greatly reduced prices. Such as food stamps, and legal aid, and food giveaways.
 * Medicare covers some poor people who are unemployed or not covered by companies insurance plans.
 * Education is another redistribution plan because the government wants people to get the knowledge so they may add more productive production possibilities.
 * Faith based initiatives and community initiatives are used to help faith-based groups work more efficiently with the federal government.

1. Welfare attempts to raise poor peoples standard of living by aiding the poor. It includes types of redistribution plans. 2. Poverty exists in a free market economy because not all the money is distributed equally. 3. Cash transfers are direct payers of money to eligible people, poor, disabled, and retired people and in-kind benefits are, goods and services that are provided for free or at greatly reduced prices. Such as food stamps, and legal aid, and food giveaways. 4. Social security, allows for retirement income to the elderly and living expenses to disabled americans. 5. An individual would have to be at a wage of 8 an hour, and a two person household would have to maintain a 10 hour wage or higher.