1. Economics
Chapter 2 Review

2. Concepts Who was Adam Smith? What is ‘laissez faire’?
What type of economic structure would he want? Why?
What does specialization do for the economy?
What is ‘laissez faire’?
3 Basic Economic Questions
How does the product market work in a market economy?

3. Concepts Economic Systems-Characteristics
Market
Command
Traditional
Purpose/Role of Government in
Command Economy
Traditional Economy
Market Economy
Mixed Economy

4. Concepts Free Enterprise Economy Decision Makers in Economies
What does it mean?
Decision Makers in Economies
Seven Economic and Social Goals
What they are?
Characteristics
Resolving trade-offs between goals.

5. Concepts Characteristics of a Free Enterprise System Economic Freedom
Voluntary Exchange
Private Property Rights
Profit Motive
Competition

6. Concepts Role of Government in a Free Enterprise Economy Protector
Provider
Regulator
Consumer

7. Visual Summary
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8. Visual Summary
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9. Visual Summary
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10. Essay Questions
Why wouldn’t a “completely free market” economy (no government involvement) be practical for any major country? Provide examples to support your answer.

11. Essay Questions
Given the reading, how would President Ronald Reagan react to the idea of giving government sponsored help for the unemployed?

12. Essay Questions
List, describe, and give examples of the characteristics found in a free enterprise economy.

13. Essay Questions
Based on the reading, what are the potential trade offs for increasing the federal minimum wage?