Micro-Economics
Chapter 2: Economic Systems and Decision-Making
Study Guide
Economic Systems
Text pp. 32-41
Additional Resources: Capstone Activities 1.5 and 2.6, Critical Thinking Act. 2, Guided Reading 2.1
Learning Objectives: I can…
LO1: define the term economic system and give examples of different types of economic systems.
LO2: identify how socialist, communist and capitalist systems attempt to answer the three basic
economic questions.
LO3: compare and contrast the advantages and disadvantages of traditional, command, market and
mixed economies.
Key Term
Economic system
Traditional
Economy
Command
Economy
Market
Economy
Market
Capitalism
Mixed
Economy
Socialism
Communism
Definition
Explanation
Evaluating Economic Performance
Text pp. 43-46
Additional Resources: Graphic Organizer – “Economic Goals”, Guided Reading 2.2
Learning Objectives: I can…
LO4: identify and explain economic goals that societies may pursue.
LO5: link economic goals to particular economic systems.
LO6: identify how societies evaluate economic performance based on identifiable goals.
Key terms/
concepts
Economic
freedom
Economic
efficiency
Economic
equity
Economic
Security
Full
Employment
Price
stability
economic
growth
Minimum
Wage
Social
Security
Inflation
Fixed
incomes
Definition
Explanation/example
American Free Enterprise
Text pp. 48-53
Additional Resources: Graphic Organizer, “Roles in a Free Enterprise Econ.”, 2.3 Guided Reading, Math
Practice
Learning Objectives: I can…
LO7: explain how the three basic economic questions are addressed by the American free enterprise
system.
LO8: assess self-interest as a component of free enterprise.
LO9: explain the relationship between free enterprise and capitalism.
Key term/concept
Free
Enterprise
Voluntary
Exchange
Private property
Rights
Profit
Profit motive
Competition
Consumer
Sovereignty
Mixed or modified
Free enterprise
Economy
Definition
Explanation/Example