Chapter 7 Review
The
information found below represents the key points and issues raised in Chapter 7
from your text, Ideologies.
The
term private enterprise refers to the fact that most economic concerns are
operated by private groups rather than by government agencies. This system is
also called free enterprise (because the individual is free to conduct business
without interference), capitalism (because of the importance of individual
ownership of capital goods), and the price system or market economy (for reasons
that will soon be evident).
A
market economy is an economic system in which the basic questions of what, how
and for whom to produce are resolved by the interaction among buyers and
sellers.
Points to Note:
What
is the historical/political significance of mercantilism?
How
was Adam Smith and why was he (and his beliefs) important? How did they impact
and how have they impacted on society?
What
is meant by Laissez-faire?
What
was the impact of the Industrial Revolution on society? What would the economic
and political significance be?
How
would you define invisible hand?
What
are the seven major characteristics of the private enterprise system?
private
property,
Figure
7.1: Features of the Private
Market
Economy Cases of Supply and Demand
Advantages
and Disadvantages of the