Module 3

Question 1

What are the benefits and drawback of capitalism?

Answer 1

Benefits: more jobs, higher income, more goods and serices, help for less fortunate, more opportunity
drawback: possibilty of heavy losses, income inequality, exploitation

Question 2

What are the 4 rights under capitalism?

Answer 2

Right to own property, to compete, free choice, make and keep profits

Question 3

What are the 4 types of free markets?

Answer 3

Perfect Comp: Many Sellers, No Product Difference
Monoplistic Comp: Many Sellers, Some Product Difference
Oligopoly: Few Sellers, Some Product Differences
Monopoly: One Seller Only, No Competition

Question 4

Forces that effect market price?

Answer 4

Supply and Deman

Question 5

What are the four phases of the business cycle in order?

Answer 5

Expansion (rise/prosperity), Peak (highest point), Contraction (pace slows), Trough (lowest point)

Question 6

What macroeconomic indicators determine health of economy?

Answer 6

GDP, Price Indexes, Unemployment Rate