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The Market System and the  Circular Flow Chapter 2 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter Objectives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2-
Economic Systems ,[object Object],[object Object],[object Object],[object Object],[object Object],2-
Economic Systems ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2-
Index of Economic Freedom Free Mostly Free Mostly Unfree Repressed 1- Hong Kong 3- Ireland 5- United States 20- Belgium 31- Spain 48- France 101- Brazil 126- China 134- Russia 148- Venezuela 156- Cuba 157- North Korea Source: Heritage Foundation ( www.heritagefoundation.com ) and  The Wall Street Journal Ranking of 157 countries for 2008 2-
Market System Characteristics ,[object Object],[object Object],[object Object],[object Object],[object Object],2-
Market System Characteristics ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2-
Market System Questions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2-
Market System Questions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2-
The Invisible Hand ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2-
The Command System ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2-
Circular Flow Resource Market Product Market Businesses Households 2-
Circular Flow Costs Money Income Revenue Consumption Resource Market Product Market Goods & Services Goods & Services Businesses Input Factors Resources Households 2-
Circular Flow Resource Market Product Market Businesses Households Costs Money Income Input Factors Resources Goods & Services Revenue Goods & Services Consumption Figure 2.2; page 40 2-
Key Terms  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2-
Next Chapter Preview… Demand, Supply, and the Market Equilibrium 2-

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Chap002 Econ

  • 1. The Market System and the Circular Flow Chapter 2 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
  • 2.
  • 3.
  • 4.
  • 5. Index of Economic Freedom Free Mostly Free Mostly Unfree Repressed 1- Hong Kong 3- Ireland 5- United States 20- Belgium 31- Spain 48- France 101- Brazil 126- China 134- Russia 148- Venezuela 156- Cuba 157- North Korea Source: Heritage Foundation ( www.heritagefoundation.com ) and The Wall Street Journal Ranking of 157 countries for 2008 2-
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12. Circular Flow Resource Market Product Market Businesses Households 2-
  • 13. Circular Flow Costs Money Income Revenue Consumption Resource Market Product Market Goods & Services Goods & Services Businesses Input Factors Resources Households 2-
  • 14. Circular Flow Resource Market Product Market Businesses Households Costs Money Income Input Factors Resources Goods & Services Revenue Goods & Services Consumption Figure 2.2; page 40 2-
  • 15.
  • 16. Next Chapter Preview… Demand, Supply, and the Market Equilibrium 2-