Activity #1 ( 1st week)

RECALL!
Q: Recall the eight goals of economics, which among these goals are made for
economic policies? Explain your answer?
1. Economic growth
 Economic growth expands the overall size of the economy
and strengthens fiscal conditions. Boosting economic
growth does reduce future budget deficits. It increase the
productive capacity of the economy.

2. Full employment
 Full Employment maximizes potential output in an
economy, achieving productive efficiency and economic
growth. Full employment reduces government welfare
spending and enables more income taxes – improving budget
position.

3. Economic freedom
 Economic freedom enshrines personal choice, voluntary
exchange, and protection of private property at its core.
It is the freedom to start a business or hire an employee
without government interference or to invest and trade
with whomever you please. It is the freedom to select how
to create, market, as well as use your own resources,
while respecting others' rights to reciprocate.

4. Equitable distribution of wealth and income

 A more equitable distribution of income may help
accelerate growth and promote economic development. An
equitable distribution of wealth gives all citizens a fair
opportunity to become successful.
5. Economic security
 Economic security strengthens tolerance and happiness
as well as growth and development. Economic
security promotes personal wellbeing, happiness and
tolerance, while benefiting growth and development.
6. Economic stability
 Economic stability enables other macro-economic
objectives to be achieved, such as stable prices and stable
and sustainable growth. It also creates the right
environment for job creation and a balance of payments.
This is largely because stability creates certainty and
confidence and this encourages investment in technology and
human capital.