Chapter 2

Read 2(1) p. 22-27 Read the preview of the section on page 23. Look at the picture on p.22. What do economic systems enable societies to do? Look at the graph on p.24, what resource dominates wheat production? What caused these changes? Write down the 5 economic goals listed in the text box on page 25, what economic goal could help victims of flooding or hurricanes? What type of economic system is pictured on page 26? Identify the key terms listed on page 23. Answer questions #1-8 (odd or even) on page 27.

Read 2(2) p.28-32 Read the preview of the section on page 28. What are the three examples of markets pictured on page 28-29. Look at the Circular Flow pictured on page 30, What is exchanged in the factor market? What is exchanged in the product market? Look at the cartoon on page 31, what are they really saying? Read the fast fact on page 32, when does the free market provide social services? Identify the key terms listed on page 29, Answer questions #1-8 (odd/even) on page 32. Read the Profile on Adam Smith (p.33) Answer questions #1+2 .

Read 2(3) Centrally Planned Economies Read the preview of the section on page 34. Look at eh pictures on page 34, why doesn't the government have to motivate individuals in a market economy? Look at the picture on 35, does the worker appear very style conscious? What three communist icons are pictured on page 36? What problems are shown in the pictures on pages 36 and 37? Identify the key terms listed on page 34. Answer questions #1-6 (odd/even on page 38. Read the Real-Life Case Study on pag 39. Answer questions #1+2 on page 39.

Read 2(4) p.40-44 Read the preview of the section on page 40. What public good is pictured on page 40? What government benefit is pictured on page 41? Read about Sweden's Mixed Economy on page 41, why do economists refer to the Swedish government as a "nanny state"? Look at the new circular flow model pn page 42, how does it differ from the model on page 30? Look at the Continuum of Mixed Economies picture on pag 43, where would Sweden fit? Explain your answer. Read the fast fact on page 43, what Chinese fast food is discussed? Look at the picture on page 44, what type of economic systems are shown? Identify the key terms listed on page 40?