Identify the distinguishing characteristics of pure market, mixed, and pure command economies

Chapter 2 – Economic Systems, Resource Allocation, and Social Well-Being

1.    
Identify the distinguishing characteristics of pure market, mixed, and pure command economies.

2.    
 

2. Briefly discuss the importance of voluntary exchange in a market setting with respect to social well-being.

Reflective Question

Discuss how China has developed through its transition to a market economy.

Chapter 3 – Government Controls of Price in a Mixed System

1. Identify the ways government can intervene in a mixed economic system.

2. Define and provide examples of a price floor and a price ceiling.

3. How might minimum wage laws actually hurt those who are intended to be helped?

Reflective Question

When governments impose price controls in an attempt to help some particular group of producers and consumers, there are often unintended consequences. Use the case of rent controls to discuss this.