1. Economics Chapter 2 REVIEWin
the
NEWS

2. Economics Chapter 2 REVIEW
Type of Economic System
Who answers the Basic Economic Questions
Traditional
- Custom and tradition, the past
Command
- Government officials
Market
- Individuals

3. Economics Chapter 2 REVIEW
Types of Mixed Economies
Authoritarian Socialism or Communism
Capitalism
Democratic Socialism

4. Economics Chapter 2 REVIEW
Extent of Government Involvement in the Economy
Authoritarian Socialism or Communism
Government owns and controls nearly all the factors of production

5. Economics Chapter 2 REVIEW
Extent of Government Involvement in the Economy
Capitalism
Government involvement is fairly limited

6. Economics Chapter 2 REVIEW
Extent of Government Involvement in the Economy
Democratic socialism
Government ownership is limited to key industries

7. Economics Chapter 2 REVIEW
5 Features of the U.S. free-enterprise system
Own private property and enter into contracts
Make individual choices
Engage in economic competition
Make decisions based on self-interest and
Participate in the economy with limited government involvement and regulations-

8. Economics Chapter 2 REVIEW
Five Features of the US free- enterprise system
private property and contracts: Individuals and businesses have the right to own goods: individuals and businesses may enter into contracts

9. Economics Chapter 2 REVIEW
Five main Features of the US free- enterprise system
individual choices: individuals have freedom of choice in making economic decisions

10. Economics Chapter 2 REVIEW
Five main Features of the US free- enterprise system
Competition: economic rivalry among businesses selling the same or similar products

11. Economics Chapter 2 REVIEW
Five main Features of the US free- enterprise system
self-interest: producers and consumers make economic choices for their own benefit

12. Economics Chapter 2 REVIEW
Five main Features of the US free- enterprise system
limited government involvement and regulations: most economic decisions are made by individuals, not the government

13. Economics Chapter 2 REVIEW
Types of Exchanges between
Households and government –
households provide resources to government for income;
Households pay taxes to government for services

14. Economics Chapter 2 REVIEW
Types of Exchanges between
Households and Businesses
households provide resources to businesses for income;
Households pay businesses for products.

15. Economics Chapter 2 REVIEW
Types of Exchanges between
Businesses and Government –
Businesses provide products to government for money payments: Businesses pay government for services in the form of taxes.

16. Economics Chapter 2 REVIEW
Types of Exchanges between
Businesses and Government
Businesses provide products to government for money payments:
businesses pay TAXES – the government for services.

17. Economics Vocabulary Chapter 2-3
Name the US Economic Goals
Maintaining freedom of choice
- Economic Freedom

18. Economics Vocabulary Chapter 2-3
Name the US Economic Goals
2. Making the best use of scarce resources
- Economic Efficiency

19. Economics Vocabulary Chapter 2-3
Name the US Economic Goals
3. Ensuring economic justice
- Economic Equity

20. Economics Vocabulary Chapter 2-3
Name the US Economic Goals
4. Ensuring people’s economic well-being -Economic Security

21. Economics Vocabulary Chapter 2-3
Name the US Economic Goals
5. Achieving full employment and stable prices
- Economic Stability

22. Economics Vocabulary Chapter 2-3
Name the US Economic Goals
6. Increasing the amount of goods and services produced by each worker
– Economic Growth