1. Economics: Chapter 2 Study Guide Name__________________________________
EconomicSystem
3 EconomicQuestions
5 EconomicGoals
EconomicEfficiency
EconomicEquality
EconomicFreedom
EconomicSecurity
EconomicGrowth
Traditional Economy
Market Economy
CommandEconomy/CentrallyPlannedEconomies
MixedEconomies
Market
Specialization
Household
Firm/Business
Factor Market
ProductMarket
Self-Interest
Competition
InvisibleHand
Socialism
Communism

2. StrengthsandWeaknessesof aCentrallyPlannedEconomy
Laissez Faire
Free Enterprise
Be able tointerpretaCircularFlowChart of Market/MixedEconomies
Possible Essay Questions
What are some of the advantagesof a mixedeconomy?
Explainwhathashappenedtomostof the large centrallyplannedeconomies.Whyhasthishas
happened?
How doesthe governmentparticipate inamixedeconomy?
Explainwhya completelyfree marketeconomywouldnotbe a practical one for anymajor country.
What are some of the economicgoalsmosteconomiestrytoachieve?
What strengthsdoessocialismhave asaform of governmentoreconomicsystem? Whywould
capitalismbe abetteror worse than socialismasaneconomic systemforAmerica?