2.5 interactive reading economics worksheet PDF

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CLASS WORK ASSIGNMENT DONE IN CLASS FOR ECONOMICS CHAPTER 2.5 READING NOTES PLUS QUESTIONS THAT GO WITH IT INTERACTIVE WORKSHEET...

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Lesson 2.5 Benefits of Free Enterprise Key Terms profit motive open opportunity legal equality private property rights free contract voluntary exchange interest group patriotism eminent domain public interest public disclosure laws

Academic Vocabulary Persistence: the quality of continuing despite problems or opposition Dynamic: a force leading to change or growth Disclosure: the act of making something known to the public Implement: to put into effect

Lesson Objectives 1. Explain the basic characteristics of the U.S. free enterprise system. 2. Describe the role of the consumer and the entrepreneur in the American economy. 3. Identify the protections in the U.S. Constitution that underlie free enterprise. 4. Describe the role of government in the U.S. free enterprise system.

Interactive Reading Notepad • Lesson 2.5 Copyright © by Savvas Learning Company LLC. All Rights Reserved.

Basic Characteristics of Free Enterprise: Reading 1. Categorize: As you read “Basic Characteristics of Free Enterprise,” use this graphic organizer to categorize the characteristics and benefits of free enterprise. Free Enterprise System

Characteristics •

•

Benefits • Promotes finical discipline, risk

Opportunity

taking, and efficiency.

Incentives

• Encourages consumers and

Profit Motive

producers to come together in the marketplace. • Allows economic mobility.

Competition

•

•

Legal Equality

• Encourages individual freedom of

•

Private Property Rights

•

•

•

Economic Freedom

Maximizes the use of human capital.

choice for consumers and producers. • Stimulates production of a variety of goods. • No one forced to believe.

2. Draw Inferences: What characteristic of the free enterprise system allows individuals to paint stripes or stars or polka dots on their cars? Private Property Rights

3. Summarize: What does competition regulate the free market? When the quality of several goods is about equal, consumers will choose the product with the lowest price.

Interactive Reading Notepad • Lesson 2.5 Copyright © by Savvas Learning Company LLC. All Rights Reserved.

4. Analyze Interactions: How does the right of voluntary exchange promote competition? Since consumers can choose to buy from anyone, businesses will compete to make a sale.

Key Roles in the Free Enterprise System: Reading 5. Use Visual Information: Look at the image of the automobile and read the caption. What signal did consumers send to the producer of the Edsel? Consumers signaled the producer not to produce so many Edsel’s, that the car was not desirable to it was priced too high.

6. Draw Inferences: What kind of person makes a good entrepreneur? List at least two personality traits of a successful entrepreneur. Fearless, imaginative, flexible.

Economic Freedom and the Constitution: Reading 7. Vocabulary: Use Context Clues The word eminent can mean “having a position of superiority.” The word domain can mean “rights to the ownership of land.” Use these meanings to explain why the government can take someone's private property. The government, because of its superior position, have supreme authority over all lands under its control.

Interactive Reading Notepad • Lesson 2.5 Copyright © by Savvas Learning Company LLC. All Rights Reserved.

8. Use Visual Information: What does the cartoon suggest about property rights versus the government's rights of eminent domain? The cartoon suggests that the practice of taking property through eminent domain is not popular with some people.

9. Draw Conclusions: Why do you think the Constitution was amended in 1913 to allow Congress to tax incomes directly? The government needed more revenue and felt that a graduated income tax was the fairest and most stable way to do so.

The Limited Role of Government in the Marketplace: Reading 10. Determine Central Ideas Look at the photo of the automobile dealership. How do consumers benefit from public disclosure laws related to buying a car? Consumers can learn facts that help them compare various cars and purchase the one that best meets their needs.

11. Cite Evidence to support the idea that government acts to promote the public interest. The federal government makes sure that producers provide consumers throughout, honest and clear. Information about their products; it sets manufacturing standards, requires that drugs are safe and effective and supervises that conditions in which foods are produced to make sure they are sanitary

Interactive Reading Notepad • Lesson 2.5 Copyright © by Savvas Learning Company LLC. All Rights Reserved.

12. Assess an Argument Highly regulated industries have argued that government rules and regulations stifle competition, resulting in prices that are unnecessarily high. Does this argument make sense? Why or why not? Yes, Regulations are so costly that many entrepreneurs are kept out of those industries; this allows the few companies within those industries to change prices that are higher than they would be if they had to compare with more companies for consumers dollars.

Interactive Reading Notepad • Lesson 2.5 Copyright © by Savvas Learning Company LLC. All Rights Reserved....