Social Studies - 2019-20
GOVT.14c - Government's Role in the Economy
The student will apply social science skills to understand economic systems by
c) evaluating the impact of the government’s role in the economy on individual economic freedoms.
UNDERSTANDING THE STANDARD
Maintaining freedom of choice in the marketplace is the basis of the free-enterprise system. Government plays a limited but important role in the protection of individual economic freedoms.
Individuals have the right to the basic
economic freedoms enjoyed in a free
market society. The government is
responsible for protecting these
The degree of economic freedom in a nation tends to be directly related to the degree of political freedom its citizens enjoy.
High degree of economic freedom
High degree of political freedom Authoritarian nations
Limited economic freedom
Limited political freedom
Economic freedoms of individuals can include
ability to earn money
right to purchase property
right to spend incomes on goods and services
right to choose occupations or change jobs
right to make choices about where and how much to save
right to start new businesses and decide what to produce.
The government has created certain institutions and consumer-protection laws and agencies to protect these freedoms, including the following:
Consumer Product Safety Commission
Fair Labor Standards Act
Occupational Safety and Health Administration
Food and Drug Administration