Macro Chapter 2

What are the economic systems?

• Capitalist Economy

• Market System

• Mixed System

• Command Economy

• Socialist System

Who is known as the father of economics?

• John Maynard Keynes
• Milton Friedman
• Adam Smith
• David Ricardo

Who created the Wealth of Nations?

• John Locke
• Karl Marx
• Adam Smith
• David Hume
• Karl Marx

Who wrote Communist Manifesto?

• Joseph Stalin
• Karl Marx

• Vladimir Lenin
• Leon Trotsky
• Adam Smith

Who wrote Das Kapital?

• Friedrich Engels
• Karl Marx
• Max Weber
• Adam Smith

What are the two main ways in which economic systems differ?

• What government is enforced?

• Who controls the people?

• What is the method used to coordinate economic activity?

• Who owns Factors of Production

• What is the hierarchy between the rich and poor?

In a market system there is ___ ownership of ___

• private ownership of resources
• collective ownership of assets
• public ownership of resources
• government ownership of property

In a command system there is ___ ownership of ___

• private ownership of resources
• collective ownership of assets
• public ownership of resources
• government ownership of property

In a market system markets and prices...

• increase unemployment rates
• determine resource allocation and guide economic decisions.
• set government regulations
• reduce consumer choices

In a market system each participant...

• acts in their own self-interest
• rely on government regulations
• ignore market trends
• act solely for the benefit of others