Download Economics Chapter 2

Economics Chapter 2
Essential Questions
1. List and explain what the three economic
questions are?
2. Land, labor, capital, and entrepreneur are
the four factors of production. List and
explain the four factor payments that
accompany the factors of production.
3. How can innovation lead to economic
growth?
4. According to Adam Smith, what is the
driving force (motivating force) for
consumers and the regulating force for
producers? So why is their no need for
government interference?
5. Why does the free market economy
result in the availability of a wider variety
of goods and services?
6. What beliefs did Karl Marx hold about
Capitalism?
7. What changes led to economic growth in
China?
8. Describe what a capitalist economy
looks like. What countries would be
considered capitalist?
9. Why is the United States said to have a
free enterprise system?