Chapter 2 Section 4

How is government intervention less extreme in China's economy?

1/4 of all enterprises are at least partially owned by individuals transition to a market economy.

Why do the world's national economies fall inside a continuum?

No national economy relies completely on one system, but fits somewhere in-between

How does the government intervene in North Korea's economy?

Government owns all the property and economic output. State-owned industries produce 95% of goods.

What needs and wants are answered more fairly with government involvement?

Education, health care, employment, and mass transit

How does free enterprise differ from laissez faire?

Government has limited role in free enterprise, but has no role in laissez faire.

Where is the world's freest market located?

Hong Kong

What needs and wants are hard to answer?

National defense, roads, and highway systems

What does it mean to privatize an industry?

Ownership is transferred from state to private individuals.

Why is China said to have a transition economy?

They are in the process of moving to market based economy.