Chapter+2+Work

Read Pgs 25-27 #1-7

Read pg 28-32 #1-8 and 10
 * 1) An Economic System is the method used by a society to produce and distribute goods and services.
 * 2) Traditional economy: relies on habit, custom, or ritual to decide what to produce, how to produce it, and to whom to distribute it. Market Economy: economic decisions are made by individuals and are based on exchange or trade. Command Economics: because a central authority is in command of the economy. Mixed Economy: market-based economic systems in which government plays a limited role. The main difference between these economies is how they each function on the economy whether it be on habit or trade or government controlled.
 * 3) Factor payments are the income people receive for supplying factors of production such as land, labor, capital, or entrepreneurship. People get paid diffrent amounts because one place may produce the item at a lower price an ex being china or korea and then sold at a diffrent price. Another example is one place having an abundence of one product and selling it a lower price than another competitior.
 * 4) The government should provide safety nets which are a set of government programs that protect people experiencing unfavorable economic conditions. They should provide them because if people are having a hard time then they should look towards their government to help provide them with aid.
 * 5) Traditional economies: family or small communities. Command Economy: Government controlled USSR. Market Economic system: capitalism such as america.
 * 6) "Too much unneeded spending on social security"- My Homie Thompson


 * 1) Specialization is the concentration of the productive efforts of individuals and firms on a limited number of activities. If we concentrate on one task then maybe we can become more efficient by only producing one product or a few rather than multiple ones.
 * 2) Factor markets are firms that purchase factors of production while product market are products and goods produced by the firms or households.
 * 3) Profit is the financial gain made in a transaction.
 * 4) Households are a group of people living together and they are consumers of goods that help stimulate the economy. Firms are organizations the use resources to produce a product which in turn sells to households.
 * 5) Competition helps firms benefit the customers because with they themselves fighting over a lower price the consumer finds the product they want at a lower price if there was no competition.
 * 6) The invisible hand of the marketplace is the wanted result that consumers get the products they want at prices that closely reflect the cost of producing them and all of this happening without any central plan or direction.
 * 7) With incentives motivating consumers sovereignty then they have a driver and vehicle relationship with incentives being the driver.
 * 8) Economic equity cannot be achieved easily because we are all worth different amounts and example being a doctor is worth more than a chef or a teacher to an anthropologist.
 * 9) Adidas and small shoe stores. Orange orchards and grocery markets. Paper company and small school stores.
 * 1) Adidas and small shoe stores. Orange orchards and grocery markets. Paper company and small school stores.

2.4 Modern Economics
 * Laissez Faire: the doctrine stating that government should not intervene in the marketplace.
 * Private Property: property that is 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: A period of change in which an economy moves away from central planning toward a market-based system.
 * Privatized: Sold to individuals and then allowed to compete with one another in the market place.


 * 1) Know the limits of Laissez Faire
 * 2) How to balance control and freedom
 * 3) Know how the government interacts within each style of economy
 * 4) How to transfer money
 * 5) Know the different types of economies
 * 6) Which countries prefer a government intervention dominates
 * 7) Which countries where the market system dominates
 * 8) Understand the US economy