#The goal of a market economy is to full#

WhatвЂ™s the difference between economic goals and other goals вЂ“ social goals, for example?.

Why are economic goals important? What role do they play in our economy?.

Why is it so difficult to reach and maintain agreement on goal priorities?.

If economics teaches us that individuals make decisions, what do we mean when we say our вЂњcountryвЂќ has economic goals?.

Who determines / sets economic goals, and how?.

The priority ranking of our nationвЂ™s economic goals is constant.

When economic goals are achieved, everyone benefits.

If politicians made better decisions, we could achieve all our economic goals.

All economic systems have the same goal priorities.

Governments do not have economic goals.

Policy decisions are rarely all-or-nothing decisions.

Trade-offs in addressing national economic goals occur at the margin.

Scarcity impacts our ability to translate national economic goals into policy.

Perceptions of the relative importance of economic goals changes with time and circumstance.

Evaluation of the importance of relative importance of economic goals is subjective.Economic goals are not always mutually compatible the cost of addressing any particular goal or set of goals is having fewer resources to commit to the remaining goals.

#The goal of a market economy is to full#

National economic goals include: efficiency, equity, economic freedom, full employment, economic growth, security, and stability.Review: вЂњGovernmentsвЂќ donвЂ™t make choices people do.Discuss the implications of changing goal priorities for policy formation and for consensus.Repeat the consensus-building exercise in specific policy contexts.Discuss the relationship between goals and policy, and the implications of the lack of goal consensus for policy formation.Consider how command and traditional economies rank goals differently from market economies.Participate in a consensus-building exercise to rank economic goals in order of importance.Differentiate between вЂmarket-drivenвЂ™ and вЂnon market-drivenвЂ™ goals.Tie to scarcity, trade-off, marginal decision-making. Discuss the compatibility/incompatibility of goals.Introduce and define the generally accepted list of national economic goals.Not all individuals will bear the same costs or share the same benefits of those policies. Governments provide an alternative method to markets for supplying goods and services when it appears that the benefits to society of doing so outweigh the costs to society.Standard 16: Students will understand that There is an economic role for government to play in a market economy whenever the benefits of a government policy outweigh its costs. To determine the optimal level of a public policy program, voters and government officials must compare the marginal benefits and marginal costs of providing a little more or a little less of the programвЂ™s services.Most choices involve doing a little more or a little less of something few choices are all-or-nothing decisions. Standard 2: Students will understand that Effective decision making requires comparing the additional costs of alternatives with the additional benefits. The evaluation of choices and opportunity costs is subjective such evaluations differ across individuals and societies.The choices people make have both present and future consequences.Choices involve trading off the expected value of one opportunity against the expected value of its best alternative.Like individuals, governments and societies experience scarcity.Therefore, people cannot have all the goods and services they want as a result, they must choose some things and give up others. Standard 1: Students will understand that Productive resources are limited. In combination with lessons 7-12, it offers a model for organizing and tying together macroeconomic topics in the high school classroom. This lesson creates a framework for study of macro-economic topics by identifying national economic goals and then engaging students in a consensus-building exercise in which they must prioritize goals in a variety of policy contexts. Because we have multiple national economic goals and because individualsвЂ™ ranks and weightings of goals vary with time and circumstance, policy creation is an ongoing process of making trade-offs. Through government, we establish economic goals and design policies to achieve them. Public choices, like private choices, are driven by goals. Government officials, citizens, and public workers also have limited resources to satisfy a burgeoning list of wants and needs, and the reality is that in public life, as in private life, choices have opportunity costs. As we move into macro-economics, the study of the operations of the economy as a whole, it is important to remember that scarcity extends beyond the decision-making of individuals in households and businesses.