Unit 2

Question 1

4 economic systems and who has power in them

Answer 1

traditional - cultural norms
Market - people
command - government
mixed - both government and citizens

Question 2

Similarities/Differences of Socialism and Communism

Answer 2

Both strive to make all people equal
however communism is a form of government and economic system while socialism is just an economic system
The ownership of assets is also different…in communism nothing is private, but in socialism there can be private property

Question 3

Capitalism needs these 3 things…

Answer 3

Economic freedom, voluntary exchange, private property

Question 4

Profit motive/entrepreneurship - innovation/competition

Answer 4

People will take risks to make money and begin businesses. The entrepreneurs will need to make their products better to try to have the edge on the others around them. If they make something that already exists, they won’t succeed

Question 5

5 roles of government in free enterprise and examples

Answer 5

Protector - Protects consumers from falsehoods
Provider - provides some goods and services
Consumer - Buys things
Regulator - Preserves competition
Promoter - Promotes national goals