Module Four Introduction


Three economic questions that all societies must answer:

  • 1. WHAT GOODS WILL BE PRODUCED?
    2. HOW WILL THE GOODS BE PRODUCED?
    3. FOR WHOM WILL THE GOODS BE PRODUCED?

One only needs to pay sales tax on their next purchase to know that the government plays an important role in our economy. The government's involvement in the economy, however, goes much further than simply placing taxes on certain items. In this module, we will examine how the government can act as both a barrier and facilitator to economic growth.

As with many government policies, their perceived effectiveness depends on who you ask. For example, does allowing products imported from Mexico without having tariffs (taxes) placed on them act as an economic barrier to farmers here in the US, or does this policy benefit our entire nation as whole?

How about the issue of welfare? Does the government providing financial assistance to those in need facilitate economic growth or does it create a barrier to individual prosperity?

There are no easy answers to the above questions. It is issues like these that we will examine in this stop of our tour. Be sure to check the pace chart to see what you need to accomplish this week.



Upon completion of the tutorials and activities in CITY HALL you should be able to:
  • Identify and define the 4 types of economic systems.
  • Evaluate the effectiveness of economic systems in achieving social goals such as freedom, efficiency, and equity.

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