Chapter+2

__**page 27 1-7**__ 1) an economic system is a method used by a society to make and create/produce and distribute goods and services 2) traditional economy- relies on habit and ritual market economy- based on individuals (exchange and trade) command economy- central government mixed economy- market based systems they differ from where all the information comes from and who specifically is involved in each of them. 3) resources that people provide are not all worth them same amount and not everyone makes the same amount of resources. ex: how using a machine to make butter would take less effort and less time unlike churning butter by hand which costs more time and effort 4) so that the people have a secure feeling and trust in their government so that if anything would be to happen to them they would have a "safety net" to rely on 5) traditional- amish people command- cuba (communism) market economic system- united states 6) keeping social security, national defenses, income security, and health care all in check and doing their best not to lose out on them. 7) traditional economy- people's normal habits market economy- exchanging and trading command economy- economic equality mixed economy - limited governmental roles

__**page 32 1-8 / 10**__ 1) it helps a business strive if there is passion and experience behind the person in charge 2) factor market is natural resources and product markets are goods and services produced 3) the finical gain made in a transaction 4) household is people who live in the same residency firms are organizations that use resources to produce products 5) the competition helps lower prices because the companies want to fight for the customers and it gives people incentives to want the lower priced product 6) so many companies lower their prices to make it more appealing for the customers and without even realizing how much the prices are being lowerd 7) Incentives/consumer sovereignty each try to tell the consumers or producers what they want them to do Incentives gives people reasons to buy a product, and consumer sovereignty decides what gets produced. 8) Economic equity is difficult to achieve in a free market economy because not everyone does the same amount of work and less or more strive and many people work harder than others would. 9) omit 10) oil companies providing oil and gas, gas companies being supplied with gas, and people buying gas

__**8 topics and all vocal pages 40-44**__ LAISSEZ FAIRE- the doctrine that states thats 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 TRANSITION- 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 1 the rise of the mixed economy 2 how firms are privatized 3 in a mixed economy how market systems dominate each other 4 how the free enterprise and continuum compare to each other 5 when the government intervenes and its role in the economy 6 how mixed economy works 7 the untied states economy 8 foreign investments are encouraged