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                             Economics Chapter 2 Lab/Group work

Directions: As a group, locate the answers to these questions from either the textbook, or the
handouts taped to the desks on your tables. You will have 4-5 minutes to answer these
questions as a group and move on. Make sure your answers are accurate because you will be
turning these in for a grade at the end of class.

Table 1: Introduction to Economic Systems

   1.   Caption A is an example of a __________________economy. Caption B is an example of a
        ________________ economy. Caption C is a _____________ economy.

   2. Describe what you see in the following pictures:

           a. Command:                                     b. Traditional:

           b. Market:

   3. How might economic activities within a family with adults, teenagers, and young children represent
        aspects of traditional, command and market economies?

Table 2: Comparing Economic Systems
Directions: Take a look on page 42 and 43 of the text. Fill in the chart where neeed

                           Communism                     Socialism                 Market System
Who owns resources
How are resources
What role does the
government play?

   4. How are socialism and communism similar?

   5. How are socialism and communism different?
Table 3: The life of Karl Marx: An economic Revolutionary (p. 44)

  6. Who is Karl Marx? (Born, major accomplishments, famous quote)

  7. What did Marx think was the logical outcome of the struggle between the owners and

  8. What two countries did Marx influence? How did he influence them?

Table 4: Economic Choices and Essentials:

  9. Read page 50 at the top. What factors can you isolate to help you make a decision about
     where to buy your computer? (List 3 to 4)

  10. Your group has $1,500 to spend on a new computer. Spell out exactly what you want on
     the computer and what level of support services that your group needs. Write these two
     buying options out and tell me which computer you would buy and why.
                        Would you buy this or that? Circle which one you want
              Computer from MainFrame                          Computer from Unicom
         Fast processor
         40 gig hard drive                            Fast processor
         Standard word processor, graphics,           80 gig hard drive
          sound and video cards, top of the line       Standard word processor, graphics,
          applications                                    sound and video cards
         1 year warranty and 15 hours training        90 day warranty; pay per incident,
         $1,500                                          customer support after that
                                                       $1,000

Table 5: Impact of Market Economies (p. 54 and 55)

      11. What are a couple of advantages to a market economy?

      12. What are a couple of disadvantages of a market economy?

      13. Why did many societies feel it was necessary to adopt some level of government
         involvement in market economies?

Table 6: Market economy definitions: (page 48 and 49)

Directions: Define the following terms. After reading your terms, turn over your paper and the
captain of your group quizzes the rest of the group on the definitions (Hint…read the
definition, the group has to say the term.

Private property rights:                             Competition

Market:                                              Profit:

Laissez faire:


Voluntary exchange:

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