Chapter+3+HW

Pg 55 #1-6

1. Profit Motive is important for the free enterprise system because it encourages people and organizations to improve their material well-being. Voluntary exchange is important to the system of free enterprise because it allows people to decide what they want to buy or sell. Private property rights is the concept that people have the right and privilege to control their possessions as they wish. Lastly competition is important to the free enterprise system of the U.S because it provides consumers with the choice of a larger variety of goods, most of which are sold at reasonable prices. 2. Property rights and taxation are some constitutional guarantees that underlie the American free enterprise system. 3. Legal Equality: no discrimination, and equal rights for everyone. Private Property: people can control their possessions as they wish. Free Contract: people can decide which agreements they want to enter into. 4. With the government playing a greater role in the economy some opportunity costs would be paying more money for a pair of shoes priced up because of the name. 5. The decisions I make as a consumer effect the economy, for instance a t-shirt company develops a new kind of t-shirt I don't like it so i wont but it, this effects the economy. Also, if i hardly go out to the movies I'm not helping the economy. 6. The impact of economic concepts in the U.S. Constitution on contemporary economic issues and policies are that it has broadened and opened a bigger opportunity for potential entrepreneurs to begin their business's .

Chp 3.2 #1-6 1. Macroeconomics is the study of the behavior and decision making of entire economies (the president uses Macroeconomics) and microeconomics is the study of economic behavior and decision making of small units such as indivuduals, families, and businesses (a financial advisor is a good example of this). 2. Gross Domestic Product (GDP) is the total value of all final goods and services produced in a particular economy. This shows the effect the economy has and can provide with its uses. 3. GDP shows business cycles because it shows the most an economy has spent during a period of expansion and the minimum it spends in a period of contraction. 4. One example of new technology that has resulted in greater productivity for the united states is robots, they can make a car in a matter of minutes comparing to a human, production has never been higher. 5.a) Patents and copyrights have promoted innovation because they give people the thought of the large picture and with these things people now can make their product standout more and think more innovated. b) I believe innovation helps an economy because it has people always looking for a better way either with technology or something else. 6. Economic stability is measured by an economy providing and selling at an equilibrium.

Chp 3.3 #1-5 1. Most public goods generate positive externalities which means the goods have an economic side effect that generates benefits or costs to someone other than the person deciding how to produce or consume. 2. Free rider is a type of market failure because the consumer buys a good or service they don't really need 3. A public sector is the part of the economy that invloves the transactions of the government such as public goods and private sectors. 4. The government helps build a day care center but they have to cut down 5 oak trees, also they might build a train system but it pollutes the environment. The government supports positive projects by inversting money and limits bad outcomes by passing laws. 5. The public justice system is a public good because it's a service that the majority of us pay for through taxes and use daily. Chp 3.4 Pg 72 #1-7 #9-12 pick one question to answer for #13-16 1. externality 2. open opportunity 3. voluntary exchange 4. free rider 5. in-kind payment 6. gross domestic product 7. macroeconomics 9a.