Chapter 2 Economic Systems

What are the 3 economic questions?

• What to produce? How To Produce? For whom to produce?
• Who to produce? Why you produce? Like to produce?
• Why to produce? Tell who to produce? Things to produce?
• What to produce? How to produce? When to produce?

Who would agree with the following ideas: private property, laissez- faire, supply and demand determine the market

• Adam Smith

• John Locke

• John Stuart Mill

• Karl Marx

Who would agree with the following ideas: no private property, the people control the means of production, a classless society

• Adam Smith

• John Locke

• John Stuart Mill

• Karl Marx

Karl Marx wrote

• The Wealth of Nations

• Communist Manifesto

• A Treatise on Governments

• The Republic

Adam Smith wrote

• The Wealth of Nations

• The Communist Manifesto

• A Treatise on Governments

• The Republic

the principle that the government should not interfere in the marketplace.

• laissez faire

• capitalism

• market

• Anno Domini

the effort of two or more people acting independently, to get the business of others by offering the best deal

• profit

• voluntary exchange

• consumer sovereignty

• competition

If my government is selling me bread for $5 a loaf, and I have no choice but to buy that type of bread, I live in a _____ economy.

• Traditional

• Market

• Command

• Mixed

Socialism is the economic system where

• individuals own all resources and use them for the good of the society.

• the government regulates private property so that some social justice can be achieved.

• resources are shared between the individuals and the government so critical goods and services like health care, police protection, education, and food can be equally distributed.

• society meets and votes on how resources will used.

Mary Ann runs a car dealership selling only government produced cars. At the end of the month Mary Ann must give all of the money she made back to the government.

• Socialism

• Free Market

• Capitalism

• Command or Communism