The United States The United States Economy & CultureEconomy & Culture

Chapter 4, Section 3 & 4Chapter 4, Section 3 & 4

United States:United States:An Economic World LeaderAn Economic World Leader

The United States has a The United States has a free-enterprise/market free-enterprise/market

economyeconomy..

This has allowed the U.S.A. This has allowed the U.S.A. to become one of the to become one of the

wealthiestwealthiest nations in the nations in the history of the world.history of the world.

Goods & ServicesGoods & Services

A A goodgood is any object you can is any object you can buy to satisfy a want or need.buy to satisfy a want or need.

Some examples are as follows:Some examples are as follows:

CD’sCD’s

ClothingClothing

CarsCars

Goods & ServicesGoods & Services

A A serviceservice is an action is an action that meets a need or that meets a need or

want.want.

Some examples are as Some examples are as follows:follows:

Massage TherapyMassage Therapy

Medical CareMedical Care

Auto MechanicAuto Mechanic

What to BuyWhat to Buy

Often times people Often times people buy what they buy what they

need first such as: need first such as: medicalmedical carecare, ,

clothingclothing, & , & foodfood..

They can choose to do They can choose to do whatever they want whatever they want with what’s left over.with what’s left over.

The government should The government should operate the same operate the same

way.way.

A Growing EconomyA Growing Economy

To sustain a growing To sustain a growing economy, business economy, business

owners have to owners have to produce at high levels.produce at high levels.

ProductionProduction is the is the making of making of goodsgoods & &

servicesservices..

““TheThe FourFour FactorsFactors ofof ProductionProduction” are the ” are the elements needed for elements needed for productionproduction to occur. to occur.

Natural ResourcesNatural Resources

RawRaw materialsmaterials are are used to make used to make

goods.goods.

Some examples are Some examples are as follows:as follows:

LandLand, , WaterWater,,ForestsForests, , MineralsMinerals, ,

SoilSoil, & , & ClimateClimate

Labor ResourcesLabor Resources

Labor Resources Labor Resources include workers with include workers with

appropriate appropriate knowledgeknowledge, , skillsskills, ,

& & experienceexperience to to makemake goodsgoods or or

provideprovide servicesservices..

Capital ResourcesCapital Resources

Capital Resources include the following:Capital Resources include the following:

machinesmachines, , factoriesfactories, & , & suppliessupplies that are that are needed to needed to produceproduce goodsgoods..

EntrepreneursEntrepreneurs

EntrepreneursEntrepreneurs are are the people who the people who bring natural bring natural

resources, labor resources, labor resources, and resources, and

capital resources capital resources together to together to

produce produce goodsgoods & & servicesservices..

GDPGDP

One way to measure One way to measure

a country’s economy is a country’s economy is

to look at it’s to look at it’s GDPGDP, or, or

““GrossGross DomesticDomestic ProductProduct.”.”

This tells the total value of the This tells the total value of the goodsgoods & & servicesservices that a that a

country produces each year.country produces each year.

Free Enterprise/Market EconomyFree Enterprise/Market Economy

In the U.S.A., the government doesn’t really In the U.S.A., the government doesn’t really determine determine whatwhat willwill bebe producedproduced or or howhow

muchmuch..

The business owners are The business owners are freefree to decide these to decide these things with things with littlelittle governmentgovernment interferenceinterference..

In this type of economy, business owners have to In this type of economy, business owners have to compete with each other to get your business.compete with each other to get your business.

How do they do this?How do they do this?

Supply & DemandSupply & Demand

In a In a freefree--enterpriseenterprise economyeconomy, the , the consumersconsumers, ,

or the people who buy or the people who buy goods & services, help goods & services, help

decide what will be decide what will be produced.produced.

ProfitProfit

The The moneymoney that remains after all the that remains after all the costs of producing a product have costs of producing a product have

been paid is called the been paid is called the profitprofit..

CompetitionCompetition

In a In a freefree enterpriseenterprise or or marketmarket economyeconomy, many , many

businesses produce similar businesses produce similar goods or services. They goods or services. They

compete to attract compete to attract customers.customers.

CompetitionCompetition is the rivalry is the rivalry between businesses to sell between businesses to sell goods to consumers and goods to consumers and make the greatest profit.make the greatest profit.

Other Economic SystemsOther Economic Systems

In the In the CommandCommand EconomyEconomy SystemSystem, the , the

government decides government decides whatwhat will be produced, will be produced,

howhow muchmuch will be will be produced, and at produced, and at whatwhat

priceprice it will be sold. it will be sold.

Other Economic SystemsOther Economic Systems

In the In the TraditionalTraditional EconomyEconomy SystemSystem the the

social roles & the culture social roles & the culture determine how determine how goodsgoods & & servicesservices are produced, are produced,

including what the including what the prices are, & which prices are, & which

consumers are allowed consumers are allowed to buy certain goods.to buy certain goods.

The Global EconomyThe Global Economy

Today, there are more Today, there are more freefree enterpriseenterprise economieseconomies

around the world than ever around the world than ever before.before.

This, combined with modern This, combined with modern communications & communications &

transportation, allows transportation, allows these countries to work these countries to work together to maximize together to maximize

profitsprofits..

Trade BarriersTrade Barriers

Sometimes, countries Sometimes, countries establish barriers to establish barriers to

restrict trade, because restrict trade, because they prefer to produce they prefer to produce

their own goods or their own goods or services.services.

Countries may restrict or Countries may restrict or raiseraise taxestaxes on on importedimported goodsgoods, making it difficult , making it difficult

for other countries to make for other countries to make moneymoney off of their people. off of their people.

American Way of LifeAmerican Way of Life

People of the United States have brought diverse People of the United States have brought diverse customs, traditions, & foods from their customs, traditions, & foods from their homelands. homelands. PizzaPizza was brought over by the Italian was brought over by the Italian immigrants. However, most Americans share immigrants. However, most Americans share many of the same many of the same valuesvalues. . ValuesValues are the are the principles & ideals by which people live. U.S. principles & ideals by which people live. U.S. citizens care about individual rights; equal citizens care about individual rights; equal opportunities for jobs & education; fair treatment opportunities for jobs & education; fair treatment of people regardless of race, religion, or gender; of people regardless of race, religion, or gender; & private ownership of property. Many of these & private ownership of property. Many of these valuesvalues are part of the U.S. are part of the U.S. ConstitutionConstitution & help & help define American culture. define American culture.

American Way of LifeAmerican Way of Life

U.S. citizens believe they can improve their lives U.S. citizens believe they can improve their lives through through educationeducation & through their & through their religiousreligious groups. In groups. In 16471647, Massachusetts established the , Massachusetts established the first colonial public school system. Today, state first colonial public school system. Today, state laws require that all children attend school or be laws require that all children attend school or be taught at home until they are at least taught at home until they are at least 1616 years of years of age. About age. About 8585 percent of U.S. children finish high percent of U.S. children finish high school. Also, about school. Also, about 7070 percent of U.S. citizens are percent of U.S. citizens are members of religious groups. Many colonists, members of religious groups. Many colonists, such as British Protestants or Spanish Catholics, such as British Protestants or Spanish Catholics, settled in America so they could worship as they settled in America so they could worship as they wished. Therefore, many U.S. citizens believe wished. Therefore, many U.S. citizens believe that education & religious faith with prayer are that education & religious faith with prayer are needed to have a knowledgeable & morale needed to have a knowledgeable & morale society. society.

Arts & Entertainment & Science & TechnologyArts & Entertainment & Science & TechnologyMost U.S. citizens are very concerned with leisure Most U.S. citizens are very concerned with leisure

activities like tennis, golf, soccer, baseball, activities like tennis, golf, soccer, baseball, basketball, football, & hockey. U.S. citizens are basketball, football, & hockey. U.S. citizens are concerned with the latest movies & the newest concerned with the latest movies & the newest television programs; including keeping up with the television programs; including keeping up with the latest new musical forms like latest new musical forms like rock ‘n’ rollrock ‘n’ roll that was that was developed in the United States. The U.S. culture has developed in the United States. The U.S. culture has spread its influence around the world through music spread its influence around the world through music or even through its newest sodas, blue jeans, or or even through its newest sodas, blue jeans, or foods from fast food restaurants like foods from fast food restaurants like McDonaldsMcDonalds. U.S. . U.S. citizens are very concerned with the latest citizens are very concerned with the latest technology, new inventions in science, & with the technology, new inventions in science, & with the new developments in these field being used in the new developments in these field being used in the greatest greatest medicalmedical culture since the beginning of time culture since the beginning of time can be found here in the United States of America. can be found here in the United States of America. This is why people from all over the world want to This is why people from all over the world want to come to the United States to live. Therefore, be come to the United States to live. Therefore, be thankful for what you have. We are only thankful for what you have. We are only 55 percent percent of the worlds population, but we have over of the worlds population, but we have over 7070 percent of the world’s resources. percent of the world’s resources.