Chapter 3 HW

3(1) (50-55)
profit motive
open opportunity
legal equality
private property rights
free contract
competition
interest group
public disclosure laws
public interest

1. Explain at least 3 advantages of the free enterpise system. 

2. Why does the US have Federal Regulatory Agenices? (55)

3(2) (56-60)
macroeconomics
microeconomics
GDP
business cycle
work ethic
technology

4. Read Fast Fact (60) How can technoloy insure our econmic growth? 

3(3) (62-66)
public sector
private sector
free rider
market failure
externality

5. Read Fast Fact (66) How do pollution permits work?  Do you think sale of these permits is a good or a bad thing?  Explain.

3(4) (67-70)
poverty threshold
welfare
AFDC
cash transfers
in kind benefits 

6. Why does poverty exist in a free  market system?  Should poverty be abolished?  Explain your answer. 

Read about the Government and the Interstate Highway System (71)

7.  Why is it inefficient to leave highway construction soley to the states?