Economics 2

Self Interest over Societal interest.

The State owns all means of production.

Limited Gov. involvement in the economy.

Large government programs to prevent poverty.

increase in demand

decrease in demand

change in quantity demand

none of the above

Ownership by capitalists

Power belongs to the working class

Ownership by the people

Ex – China, Yugoslavia

The process of producing goods and services for profit.

The resources needed for the production of goods and services.

The outcome of economic activities in a capitalist system.

The governmental control over economic output.

government control of the economy

competition and consumer sovereignty

private ownership

pursuit of personal profit

$1.00

$1.25

$1.50

$1.75

High potential for profit

Guaranteed return on investment

Risk of property value decrease

Stable market conditions

You may not get enough returns to reach your goals

You have guaranteed returns

You may give up due to taking losses

you will lose your liquidity