Ch 2 fill in blank

Ch 2 fill in blank - The institutional arrangements and...

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The institutional arrangements and coordinating mechanisms used to respond to the economic problem are called (laissez-faire, an economic system ) [a] . p29 In a command economy, property resources are primarily (publicly , privately) [a] owned. The coordinating device(s) in this economic system (is central planning , are markets and prices) [b] . p29 In capitalism, property resources are primarily (publicly, privately ) [a] owned. The means used to direct and coordinate economic activity (is central planning, are markets and prices) [b] . p29 The ownership of property resources by private individuals and organizations is the institution of private (resources, property ) [a] . The freedom of private businesses to obtain resources and use them to produce goods and services is the freedom of (choice, enterprise ) [b] , while the freedom to dispose of property or money as a person sees fit is the freedom of (choice, enterprise) [c] . p29-30 Self-interest means that each economic unit attempts to do what is best for itself, but this might lead to an abuse of power in a market economy if it were not directed and constrained by (government, competition ) [a] . Self-interest and selfishness (are, are not ) [b] the same thing in a market economy. Pg30-31 Broadly defined, competition is present if two conditions prevail; these two conditions are: (independently acting buyers and sellers operating in markets , buyers and sellers who act jointly in markets) [a] and (buyers and sellers are limited in their ability to enter or leave markets, freedom of buyers and sellers to enter or leave these markets ) [b] . pg31 In a capitalist economy, individual buyers communicate their demands and individual sellers communicate their
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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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Ch 2 fill in blank - The institutional arrangements and...

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