Student
Learning Goal 1
1. They 're everywhere! McDonald 's hamburgers can be purchased in cities and suburbs, on riverfronts, in college football stadiums and in discount stores. There are fast food restaurants at most major road intersections, and billions of dollars are spent annually to advertise everything from fast food frozen yogurt to kid 's meals. Grocery stores have even gotten into the act with their own versions of fast food restaurants. Families with sick children can stay in Ronald McDonald houses located close to the hospital where the children are receiving treatment, and businesses routinely come to the aid of disaster victims.
How does the founding and growth of entrepreneurial ventures like McDonald 's and the resulting growth in other, similar businesses illustrate Adam Smith 's invisible hand theory?
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Learning Goal 2
2. There are four basic rights under the capitalist economic system:
• Private property
• Competition
• Profit
• Freedom of choice
Read the situations below and determine which of these is being demonstrated.
a. The owners of Pro Performance, Inc. make a profit for the owners for the first time in their history and decide to pay themselves a dividend.
b. The owners of Pro Performance, Inc. bought a piece of land for investment purposes.
c. Proctor and Gamble spends almost $4 billion a year on advertising.
d. Tom Oswalt decided to take a job as manager of an insurance agency after he graduated from college.
e. Arthur Tower receives a patent for a new method he devised to make metal springs
f. Alfred Rockwood, after he retired, decided to move to northern Michigan and start his own fly-tying business.
g. Microsoft introduces a new, upgraded version of its popular video game, X-Box 360, in order to grab a larger share of the toy market.
h. The Andersens, a young, dual income couple, draw up a will, making their children their beneficiaries of their home, property and
1. They 're everywhere! McDonald 's hamburgers can be purchased in cities and suburbs, on riverfronts, in college football stadiums and in discount stores. There are fast food restaurants at most major road intersections, and billions of dollars are spent annually to advertise everything from fast food frozen yogurt to kid 's meals. Grocery stores have even gotten into the act with their own versions of fast food restaurants. Families with sick children can stay in Ronald McDonald houses located close to the hospital where the children are receiving treatment, and businesses routinely come to the aid of disaster victims.
How does the founding and growth of entrepreneurial ventures like McDonald 's and the resulting growth in other, similar businesses illustrate Adam Smith 's invisible hand theory?
________________________________________
Learning Goal 2
2. There are four basic rights under the capitalist economic system:
• Private property
• Competition
• Profit
• Freedom of choice
Read the situations below and determine which of these is being demonstrated.
a. The owners of Pro Performance, Inc. make a profit for the owners for the first time in their history and decide to pay themselves a dividend.
b. The owners of Pro Performance, Inc. bought a piece of land for investment purposes.
c. Proctor and Gamble spends almost $4 billion a year on advertising.
d. Tom Oswalt decided to take a job as manager of an insurance agency after he graduated from college.
e. Arthur Tower receives a patent for a new method he devised to make metal springs
f. Alfred Rockwood, after he retired, decided to move to northern Michigan and start his own fly-tying business.
g. Microsoft introduces a new, upgraded version of its popular video game, X-Box 360, in order to grab a larger share of the toy market.
h. The Andersens, a young, dual income couple, draw up a will, making their children their beneficiaries of their home, property and