1. Economic Theories
Remember to title and date your notes. Also include ALL the bold information.

2. Growing Interdependence
Interdependence- nations interact or depend upon one another

3. The Role of Economic Systems
Economics- limited resources are used to satisfy people’s unlimited wants
Capitalism- economic system, freedom of choice & individual incentive
Free market- no government limitations on economic decisions

4. Adam Smith Free trade “The Wealth of Nations”
Laissez- faire: little or no government intervention
Competitions will drive the economy

5. Free Enterprise
Free Enterprise- freedom of private business/ ownership w/ minimal government regulation
Law of supply and demand
Regulations- (social security, meat inspection)

6. Mixed Economies Capitalism and Socialism
US: freedom of economic decisions & regulations

7. Socialism
Socialism- economic system owns production, determines resources, distribution wages & products, provides social services
Democratic Socialism- democratic in politics; but distribution of economic goods (Sweden, Denmark, Norway)

8. Communism Karl Marx- Communist Manisfesto
Proletariat- poor/ working
Bourgeoisie-middle class
Capitalists
Class Struggle b/t proletariat & bourgeoise
Communism- one class all property held in common, no need for government
State owns land
Controls mass communication

9. Command Economy Government planners decide 3 economic questions
What to produce
How to produce
And for whom to produce