Free Market Capitalism

tax on imports

• export

• guild

• tariff

• regulation

new economic system that replaced mercantilism in Britain and later the rest of Western Europe.

• Capitalism or Free Market

• Democracy

• Gentry

• Absolute Monarchy or Free Market

the part of Capitalism that naturally made for low prices and high quality

• Competition

• Government control

• Guilds

• Fixed wealth

Laissez-faire means...

• Hats off
• Hands around
• Hands off
• Hands on

All of the following contribute to a free market system except

• Economic freedom

• Competition

• Self-Interest

• Government ownership

What is capitalism based upon?

• government ownership of resources
• private ownership of resources 
• monarch's ownership of resources 
• no ownership of resources 

What controls the prices in a market place?

• supply and demand
• the marketplace
• government control
• raw materials

A _____________ economy is driven entirely by voluntary exchange in markets

• Traditional

• Planned/Command

• Mixed

• Free Market

A 100% free market without government involvement doesn't really exist in the modern world.

• True

• False

This circular flow model would be for a __________ economy

• Traditional

• Planned/Command

• Free Market

• Mixed Economy