ES - Economic Goals Lesson

Economic Goals

Most nations seek to accomplish several social and economic goals. Some examples of these goals are freedom, security, equity, growth, efficiency, price stability, full employment, and sustainability. Full employment refers to everyone who wants a job having a job; full employment does not mean every single person has a job. We will discuss it further in a later unit.

Command economies may prioritize different goals than market economies. Though command economies may seek growth, they find it difficult to sustain due to inefficient use of resources. Markets have little interest in and no means in place to ensure security or equity. A significant advantage of mixed economies is their ability to attempt to address every goal, though they still treat some goals as more important than others.

Market economies are best at seeking freedom, growth, efficiency, and sustainability.

Market Economy Characteristics

Economic Freedom	Economic Growth	Economic Efficiency	Sustainability
Markets allow consumers to decide how to spend their incomes, workers can choose their jobs and businesses can decide what products to make.	Markets encourage innovation (creating new products/ways of making products) to foster economic growth which creates a higher standard of living.	Markets maximize scarce productive resources to make the goods and services people want.	Market economics are better at sustaining long-term growth than command economies due to their efficiency.

Command economies are better equipped at providing security, equity, price stability, and full employment.

Economic Security and Equity

Economic Security	Economic Equity	Price Stability	Full Employment
The government provides safety nets like unemployment insurance if you lose your job or welfare if you cannot afford what you need.	The government makes sure everyone gets their "fair" share in an economy.	The government can set prices to keep them low.	The government makes sure everyone has a job, whether you want that job or not.

Remember equity and equality are not the same thing. Equity is more about fairness.

Economic Systems and Goals Vocabulary Practice

Economic Goals Practice

Economic Goals Matching Practice

Economic Systems Scenarios Practice

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