Chapter+2+HW

__**Pg 27 #1-7**__ 1. An economic system is the method used by a society to produce and distribute goods and services. 2. A traditional economy, a market economy, a command economy, and a mixed economy differ by the decision making processes. 3. People don't always get paid the same amount in factor payments for the resources they provide, the resources they provide are worth different amounts. A quarter back will get paid more than a kicker for example. A baseball player will get more money if he hit more home-runs than someone who doesn't. 4.Governments provide safety nets to their citizens so they will be safe if something goes terribly wrong. 5. Traditional- Amish people. Command- CUBA, and lastly A Market Economic System- United States! 6. The United States Governments has goals that are shown in the chart by amount spent, Social security the Government wants all people to be healthy and happy when retired. Also National Defense to keep us all safe from terrors and 7. Market Economy - Individual freedom. Command Economy - Economic equality. Mixed Economy - Limited government involvement. Traditional Economy - Customs and traditions.

__**Pg 32 #1-8, 10**__ 1. Specialization makes us more efficient because because you put all your attention into making that one product great and it pays off. 2. A factor market is where firms purchase factors of productions from households, while a product market is where households buy goods and services from the companies that produce them.3. Profit is the financial gain made in a transaction. 3. Profit is the financial gain made in a transaction.4. Households roles in an economy is exercising the economy and putting money in to get money out so spending on groceries, clothes the movies etc. While firms role in the economy is to but goods we need and then sell. 5. Competition among firms benefits the consumers because the firms lower prices with competition so consumers spend less. 6. When Adam Smith said "the invisible hand of the marketplace" he meant that competition between companies causes them to put out the best, least expensive product or service. 7. The connection between incentives and consumer sovereignty in a free market economy is pretty much incentives drives sovereignty. 8. Economic equity is difficult to achieve in a free market economy because not all people work at the same level. 10. Some real world examples of the circular flow model of a market economy are the farmers growing lemons, selling them to the store, than selling them to a little girl who is trying to sell lemonade on her street on a hot summer day.

__**Pg 40-44 TERMS than The top 8 Topics/ideas**__ Laissez Faire- the doctrine that states that's government generally should not intervene in the market place Private Property- property owned by individuals or companies, not by the government or the people as a whole Free Enterprise- an economic system characterized by private or corporate ownership of capital goods Continuum- a range with no clear divisions Transaction- period of change in which an economy moves away from a centrally planned economy toward a market based system Privatized- to sell state run firms to individuals TOP 8 1. Know how the U.S economy is doing 2. Know all terms 3. Know the advantages of a free market 4. Why markets exist 5. Know the different types of economies 6. Which countries prefer a government intervention dominates 7. Which countries where the market system dominates 8. Know about balance