With these questions **open response** 1. what is the role of the securities and exchange commission (sec)? how does it influence the economy? 2. explain the difference between capitalism and communism. what role does the government play in each type of economic system?

1. to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation

2. capitalism is based on the principle of individual rights a free market economy an uneven distribution of wealth and very little government interference. communism is based on the principle of community rights, controlled economic production, an even distribution of wealth and high levels of government oversight.