McConnell_Brue_Chapter02

No pure market systems or pure capitalism is a system

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Unformatted text preview: t systems, or pure capitalism is a system in which the only role the government plays is that of protecting private property and maintaining a market economy environment. The reality of our current system is that our government plays several stabilizing roles, but the dominant driving force behind our economy continues to be the market system or capitalism. Chapter 2 10 Learning Objective 2-2 Slide 11 Important Facets of a Market System Technology and Capital Goods—Advanced technology and capital goods are essential elements of market systems. Technology is a critical facet in that it allows for gains in productivity (more output with no more input) and capital goods are critical in that their development (factories, equipment, etc.) leads to more abundant output. Imagine a farm without tractors! Chapter 2 Learning Objective 2-2 11 A very common question most often arises at this juncture: Is the United States economy a pure market system? Stated differently, do we depend on pure capitalism? Our response to th...
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This note was uploaded on 09/10/2009 for the course ECO 2251 taught by Professor Kirkland during the Spring '09 term at Troy.

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