Economics Handbook- Use pages 118-124 in your book to complete the notes from the outline
Write your notes in your spiral
Capitalism pages 118-119
- Economic system in which there is ______________________________________ of natural resources and capital goods.
- Producers are driven by the desire to make a _____________________________________.
- Prices and wages are determined by _______________________________________________.
- Businesses tend to ____________________ if they do not produce ___________________ people want at ________________________ they are ___________________________________.
- Anyone is free to start a ______________________________ or _________________________________.
- Critics of the capitalist system argue ……
Socialism – pages 123-124
- Socialism is an economic system in which the _________________________ owns most of the means of ___________________________ and _________________________________________.
- The goal of socialism is to use the ______________________ of ________________________________ to reduce ________________________________ and meet _________________________________________.
- Under socialism the government usually only owns _____________________ industries such as ____________________, ________________________, and _________________________.
- Other industries are _______________________________ owned and _________________________ by the ________________________________.
- Countries such as ______________________ are called _________________________________.
- These nations have _______________________________ elected __________________________________.
- Critics of socialism maintain that this system leads to _______________________________ and ____________________________________________.
Free Enterprise pages 121-122
- Free enterprise is an economic system based on _______________________________________of the _________________ of _______________________________, and _________________________________of ___________________________to ______________________________________.
- The __________________________________ has a free enterprise system. Producers and _________________________ are motivated by _________________________________.
- To maximize their profits producers try to make ________________________________________ _______________________________________________ want.
- Producers engage their competition through _____________________________, ____________________, and _____________________________________________________.
- Consumers serve their self-interest by ______________________________________________.
- Government plays a _____________________________ but ____________________________ role.
- It ______________________________ to ensure _____________________________________, such as by preventing __________________________and __________________________. Monopolies.
Communism page 119
- Communism is an economic system based on _____________________________ rule, government _____________________________ of production, and decision making by ________ _____________________________.
- Under communism there is ________________ or _____________ private _______________________ of _______________________ and little or no ____________________________________________________.
- Government planners make ________________________________ decisions. Individuals have little ____________ in a communist __________________________.
- Such a system ________________________ believe would end ______________________________.
- During the 20th _____________________ most __________________________ economies failed to _________________________ their ______________________.
- Economic decisions were made to _____________________ only _____________________ Party _____________________________________.
- Also, government economic _________________________was ____________________________ often creating ____________________________ of _______________________________.
- The goods that were _______________________ were of ____________________ quality.
- People became ________________________________ with the lack of ___________________________ and ______________________________________________.
- China for example has introduced elements of _________________________________________.
- While China has allowed greater ________________________________________ for its citizens, it has not given them more _________________________________________________.
Economics Handbook Conclusion Questions
- List two differences between capitalism and socialism.
- How are socialism and capitalism similar?
- How is communism different from socialism?
- What roles do governments of free enterprise economies play?
- Why doesn’t communism work?
- List the following
- Socialist countries –
- Capitalist countries –
- Communist countries –
- Is China really communist in the 21st century? Why or why not?