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SECTION Economics: Principles in Action C H A P T E R 3American Free Enterprise C H A P T E R 3 American Free Enterprise SECTION 1 Preserving Economic Freedoms SECTION 2 Providing a Safety Net SECTION 3 Providing Public Goods SECTION 4 Promoting Growth and Stability S E C T I O N 1Preserving Economic Freedoms How does the government protect Americans’ economic rights within our system of free enterprise? What policies does the government create to serve the public interest? How does the government intervene to protect public health, safety, and well-being? A Tradition of Free Enterprise 1. Consumers influence producers through their buying decisions. 2. Consumers influence the government’s economic policies through voting and other techniques. The Public Interest Public interest can be described as concerns of the public as a whole. Protecting Health, Safety, and Well-Being Section 1 Review 1. Americans generally favor (a) strong government control of the economy. (b) limited government intervention in the economy. (c) no government intervention in the economy. (d) government control of manufacturing only. 2. The government provides a framework on which free enterprise can flourish by (a) enforcing laws and contracts. (b) forming interest groups. (c) taxing the public. (d) taxing businesses. S E C T I O N 2Providing a Safety Net What role does the government play in fighting poverty? What government programs attempt to aid those facing poverty? The Poverty Problem The poverty threshold is an income level below that which is needed to support families or households. Redistribution Programs Other Redistribution Programs Besides cash transfers, other redistribution programs include: In-kind benefits In-kind benefits are goods and services provided by the government for free or at greatly reduced prices. Medical benefits Health insurance is provided by the government for the elderly and disabled (Medicare) and for poor people who are unemployed or ar
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