2.  Phone upgrade $200

3.  Buying fabulous new jacket, $300

4.  Rock climbing/ spelunking trip $150

5.  Sky diving $150

6.  Horseback riding adventure $75 2 hour trip. Includes tip and gas.

7.  Going to see a local band $20

8. Standard 1

9.  Why do you think property rights are essential to the functioning of a market economy?

10. Property rights- rights of individuals and groups to own resources and businesses. Why are they essential to a market economy???  They give producers ______ to create G/S Incentive  They give buyers ________ to purchase G/S Trust

11.  Mixed Economy- reflects characteristics of both market and command economies  Ex. US  M- Businesses can employ whoever they wish  M- Producers can produce whatever they wish  C- Libraries, Education, Postal Service is run by the government  C- Programs such as social security provide for those who are too old to work

12.  Global Economy- Economic interaction that cross international borders  Ex. US trade with China

13.  In this country, most people work together in family groups and go fishing and hunting to get the food they need to survive. The government does not direct these families. However, the government owns several coal mines. It decides how much coal to produce, how much to sell to foreign governments, and how much to keep to run the power plants it owns. The government is considering developing a state-run fish cannery and having citizens work in the factory to add to government revenues. Traditional economy_______________________________ Command economy

14.  The government in this country provides free public education through high school for everyone. It also runs a university system that competes with private colleges. Most of the land and all industries are owned by individuals or companies. The government also provides public goods and services such as interstates, the military, and medical insurance for the elderly. Market economy___________________________________ Command economy

15.  Privatize- To change an industry or business from government control to private ownership Ex. Getting rid of the US Postal Service and only having Fedex and UPS

16.  Nationalize- to convert from private to government ownership  Ex. 2001: In response to the September 11 attacks, the then-private airport security industry was nationalized and put under the authority of the Transportation Security Administration.

17.  Would a country that is converting from a market economy to a command economy want to privatize or nationalize industries? Why?

18. Product Market (where you purchase G/S, mall, dentist office) Factor Market ( where businesses buy the factors of production; land, labor, capital, entrepreneurship HouseholdsBusinesses Circular Flow Model- shows the flow of money, products, and resources that takes place in a market economy.

19.  Circular Flow Model- shows the flow of money, products, and resources that takes place in a market economy.  The flow of ____________ money and __________ in the economy is circular!!!!!! resources  Who are the main decision makers in a circular flow model?  Businesses and households