ii l mu! JI'LLEI If i i, '[l 3. How do the goals of Efficiency, Freedom, Security, three economic questions? (28-29) Equity, and Growth used to answer the 4. . . . What is a traditional economy? How do they answer their three economic questions? 4. What is a safety net? (28) 2.2 Free Markets 5. Why do markets exist? (31) 6. How does specialization lead to a more productive and efficient society? (31) 7. Why are free markets also called free markets? In a free market who answers the three economic questions? (32) 9. How does self interest and incentive keep markets competitive according to Adam Smith (34) 10. What is the invisible hand? (35) 11. How is Consumer-Sovereignty central to a free-market (36) 2.3 Centrally Planned Economies 12. What is a centrally planned economy? (39) 13. How do socialism and communism different according to your book? (40) This in the Economic Continuum Notes. 14. According to your book socialism isn't a single system per se but a range of systems. What example does your book use?(40) 2.4 Mixed Economies 15. What is a mixed economy? (45) 16. Why does the government sometimes get involved in the economy of a system? (44) 17. What is laissez faire? (44) 18. Why does the government provide public school for all children in America? (45) 19. What is privatization? 2.5 Benefits of Free Enterprise 20. What are the seven basic characteristics of FREE ENTERPRISE? (50-52) 21. Describe the role of the consumer and entrepreneur in a free market? (52) 22. Are there limits to how much government can tax? (54) 23. What are public disclosure laws and why are they important? (55) 2.6 Supporting Economic Growth 24. How does government promote economic strength and stability (Think maximum employment, A growing economy, secure financial markets, and Economic citizenship)? 25. How does government encourage and support innovation and technology in the economy? 2.7. Public Goods and Externalities 26. What is a public good? 27. Why are public goods financed by the public sector and not the private? 28. What is the free-rider program associated with public goods? 29. What is a positive and negative externality