1. CHAPTER 2 ECONOMIC SYSTEMS

2. KEY ECONOMIC QUESTIONS WHAT GOODS AND SERVICES ARE TO BE PRODUCED? HOW SHOULD GOODS AND SERVICES BE PRODUCED? FOR WHOM SHOULD THE GOODS AND SERVICES BE PRODUCED?

3. WHAT TO PRODUCE INDIVIDUALS AND NATIONS DIFFER IN THEIR WANTS DECISIONS MUST BE MADE ON WHICH GOODS ARE VALUED AND BEST SERVE THE NATION

4. HOW TO PRODUCE ECONOMIC RESOURCES COMBINE IN DIFFERENT WAYS TO PRODUCE THE SAME GOODS AND SERVICES NEED TO FIND THE BEST WAY TO COMBINE RESOURCES

5. FOR WHOM TO PRODUCE WHICH CITIZENS WILL BENEFIT FROM GOODS AND SERVICES PRODUCED WHOSE NEEDS ARE MOST CRITICAL HOW WILL THEY BE DISTRIBUTED? EQUALLY, IF HE/SHE CAN AFFORD IT A CUSTOMER SHOULD BE ABLE TO ACQUIRE IT

6. TYPES OF ECONOMIC SYSTEMS CUSTOM-BASED--LESS DEVELOPED COUNTRIES; ANSWERS ARE DECIDED BY CUSTOM DIRECTED (PLANNED)--RESOURCES AND DECISIONS MADE BY GOVT. MARKET ECONOMY--DEMOCRATIC COUNTRIES; INDIVIDUALS MAKE DECISIONS IN THE “MARKETPLACE”

7. OUR ECONOMIC SYSTEM PRIVATE ENTERPRISE--INDIVIDUAL DECISION TO OWN A BUSINESS WITH LIMITED GOVERNMENT DIRECTION PRIVATE PROPERTY--OWN, USE, AND DISPOSE OF THINGS OF VALUE PROFIT--EARN MONEY; DESIRE TO WORK HARD AND BE CREATIVE IS THE “PROFIT MOTIVE”

8. OUR ECONOMIC SYSTEM continued COMPETITION--RIVALRY AMONG BUSINESSES; GOOD FOR CONSUMER; ENCOURAGES OWNERS TO DO BETTER FREEDOM OF CHOICE--RIGHT TO BUY, OWN A BUSINESS, WORK, RIGHT TO ORGANIZE WITH OTHER WORKERS, EXPRESS YOUR OPINIONS

9. MIXED ECONOMIC SYSTEMS COMBINATION OF GOVERNMENT AND PRIVATE DECISION MAKING AND ENTERPRISE DESCRIBE USA?

10. EMERGING MARKET ECONOMIES PATTERN OF GOVERNMENT CONTROLLED ECONOMIES MOVING TO MORE FREE ENTERPRISE (EX. SOVIET UNION, EASTERN EUROPEAN COUNTRIES) “RIGHT TO FAIL”--(NEW RIGHT) PRODUCERS ARE NOW TO SURE HOW MUCH OF SOMETHING TO PRODUCE

11. FYI MARKET DERIVED FROM MERCARI WHICH MEANS “TO TRADE” WE NOW USE LESS THAN 1% OF MUSCLE POWER USED PRIOR TO INDUSTRIAL REVOLUTION FREE ENTERPRISE--PEOPLE FORGET TO “WORK” SELLERS MARKUP PRICES; BUT PROFIT IS LESS THAN THE MARKUP

12. ASSIGNMENT PAGE 26, 27; ANSWER “REVIEW YOUR READING”, “COMMUNICATE BUSINESS CONCEPTS”, AND “DEVELOP YOUR BUSINESS LANGUAGE” INCORPORATE QUESTION IN ANSWER AND WRITE IN YOUR NOTEBOOK SEE CULTURAL NOTES ON PAGE 20