| A | B |
|---|
| Adam Smith | father of free market capitalism |
| Free market economy | by private ownership of property/resources, profit motive |
| Entrepreneur | sees an economic need and tries to fill it |
| Self-interest | the need of people to pursue actions that will benefit them and their families. |
| Mixed Economy | regulations of health care, education and in certain sectors of the economy to ensure equitable gains for all its citizens |
| Public Goods | In a mixed economy gov regulates certain sectors of the economy or provides direct services to ensure equitable gains for all its citizens. |
| Consumer Product Safety Commission | Ensures safety of products other than food, drugs, and cosmetics |
| The Food and Drug Administration | Ensures the safety of food, drugs, and cosmetics |
| OSHA | Ensures safety in the workplace |
| EPA | Environmental Protection |
| Market prices | prices of goods and services are determined by the market forces of demand and supply |
| Competition | ensures that no single producer gains monopoly of the market |
| Examples of Public Goods | Infrastructure • Public health and safety • Public schools |
| Reasons why government provides public goods and services | Goods or services may benefit everyone. The value of the goods or services is greater than individual consumers could afford• It promotes economic EQUITY |
| How EPA works | sets regulations and levies fees to discourage pollution and ensure that the producer pays all costs resulting from polluting. |
