This preview shows page 1. Sign up to view the full content.
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...
View Full Document
This note was uploaded on 09/10/2009 for the course ECO 2251 taught by Professor Kirkland during the Spring '09 term at Troy.
- Spring '09