Section 1: The Role of Government

Section 1: Types of Businesses

Two forces work together in markets to establish

prices for all the goods and services we buy. They are

demand—the desire, willingness, and ability to buy

a good or service, and supply—the quantities of a

good or service that producers are willing to sell at all

possible market prices.

Whatever goals or dreams you may have, the way you live your life will be determined, at least in part, by your relationship to money: how you get it and how you use it. The opportunities you create for yourself are greatly affected by the money habits you form when you are young.

An economic system is a set of rules that governs what goods and services to produce, how to produce them, and for whom they are produced. In this chapter, you will learn how the economic system of the United States answers these questions.

As American citizens, we live in a land of economic opportunity. Our economy provides us with a great variety of jobs, goods, and services. The United States has a free enterprise system under which consumers and producers make the major economic decisions. We can contribute to the nation’s economic success by taking advantage of economic opportunities.

In a democracy, citizens must be willing to take part in civic life. The Internet increases the opportunities to do just that. Accessing the Internet promises to strengthen democracy, but it may also present serious challenges to democracy.

When is a legal issue a criminal problem, and when is it a civil problem? Civil law concerns disputes between two or more individuals or between individuals and the government. In criminal law, by contrast, the government charges someone with a crime and is always the prosecutor.

The Constitution and the Bill of Rights contain important provisions, or laws, safeguarding the rights of Americans. In return, our system of laws gives American citizens a number of responsibilities.

Local governments are the governments closest and most accessible to you. They provide citizens with basic services such as education; fire and police protection; and water, sewage, and sanitation.