2.2: The Free Market

Chapter 2 Section 2: The Free Market

• What are the characteristics of a free market economy? (p.29): Chart
• Checkpoint (p.30): Why do markets exist?
• Graph Skills (p.31): #1 & 2
• Checkpoint (p.31): What is the role of firms in the free market economy?
• What are Incentives? (p.32): Choose one example from this chart and explain how positive and negative incentives lead to the same behavior.
• Checkpoint (p.33): Why is competition important in a free market?
• Checkpoint (p.34): Why does a free market economy result in the availability of a wider variety of goods and services?
• Section 2 Assessment: #1 - 9
• Complete this chart, then add your own virtual business (from last week) on the back of the paper.

Circular Flow Model
Circular Flow Model
The Invisible Hand