Chapter 2

Question 1

What’s the right of private property?

Answer 1

• is the legal right to own and use economic goods, for example land and buildings.
• Property is not owned by the state, and individuals may own property and use it as they see fit.

Question 2

What’s intellectual property?

Answer 2

• is an umbrella term for patents,

copyrights, trademarks, industrial designs, integrated circuit topographies, and plant breeders’ rights.

Question 3

What’s Individualism?

Answer 3

is the view that the individual is the paramount decision-maker in society and assumes that the individual is decent and rational.

Question 4

Economic freedom

Answer 4

exist when the business system operates with few restrictions on its activities.

Question 5

What’s Equality of opportunity?

Answer 5

is the assumption that all individuals or groups have an even chance at responding to some condition in society.

Question 6

What’s Competition?

Answer 6

• is the condition in a market system in which many rival sellers seek to provide goods and services to many buyers.
• The advantages of competition are that it ensures goods and services are provided at lowest costs; widens the choice of goods and services available to consumers; and regulates prices.

Question 7

What’re Profits?

Answer 7

• are the excess of revenues over expenses and are closely associated with competition.
• Profits are not only a regulator of efficiency, but also a measure of effectiveness.

Question 8

What’re Profits?

Answer 8

• are the excess of revenues over expenses and are closely associated with competition.
• Profits are not only a regulator of efficiency, but also a measure of effectiveness.

Question 9

What’s work ethic?

Answer 9

is a code of values, or a body of moral principles, claiming that work is desirable, it is a natural activity, and it is good in and of itself.

Question 10

What’s Consumer sovereignty?

Answer 10

is the assumption existing in an economy that consumers have and exercise power over producers through the decisions they make in purchasing the goods and services provided by corporations.

Question 11

Goverment’s role

Answer 11

but its involvement should be only to protect the interests of stakeholders unable to defend themselves and to provide the infrastructure for the market system to operate effectively.

Question 12

What’re the forms of capitalism?

Answer 12

• conscious capitalism,
• creative capitalism,
• state capitalism.

Question 13

Conscious capitalism

Answer 13

is the reorientation of business from a single focus on profits to emphasizing integrity, higher standards of corporate behaviour, and inclusion of all stakeholders

Question 14

Creative capitalism

Answer 14

is a new form of capitalism that places the resolution of social needs as a primary goal of economic activity rather than as secondary consequence of economic activity and performance.

Question 15

State capitalism

Answer 15

is “an economic system in which governments manipulate market outcomes for political and social purposes.

Question 16

Creative capitalism

Answer 16

laces the resolution of social needs as a primary goal of economic activity rather than as secondary consequence of economic activity and performance.

Question 17

Greed

Answer 17

Humans act in their own self-interest to some extent; that is, they desire to improve their situation. Greed is an excessive and selfish form of self-interest where individuals des ire more of something than what is needed or fair.