1. Capitalism , Free Enterprise, & Market Economy

2. What is Capitalism?
The United States was built largely on free markets and private ownership called Capitalism
Capitalism: an economic system in which private citizens own and use the factors of production in order to seek a profit

3. Free Enterprise
Free Enterprise or Market Economy is another term used to describe the American economy
In a free enterprise economy, competition is allowed to flourish with minimum government interference

4. The Spread of Capitalism
Two important concepts that laid the foundation for the market system that is the base of capitalism
The idea that people could work for economic gain
The idea that the government should have a very limited role in the economy

5. The Spread of Capitalism continued…
Laissez-faire Economics- French term that means “to let alone”
Government should not interfere in the marketplace

6. What makes capitalism work?
1. Private Property Rights
We have the freedom to own, use, or dispose of our own property as we choose as long as we do not interfere with the rights of others
This gives us the incentive to work, save, and invest because we can keep what we earn.

7. What makes capitalism work? Continued…
2. Economic Freedom
Choice is the key in a free enterprise system
Each person can choose the type of job they want and where they work
Consumers we have the right to choose the products they buy
Businesses have the right to choose the products they produce & sell
The Cost of Choice
Individuals must accept the consequences (i.e. if a individual’s business fails the government usually won’t help them out)
Profit Motive: the driving force that encourages individuals and organizations to improve their material well-being

8. What makes capitalism work? Continued…
3. Consumer Sovereignty
Consumer Sovereignty the idea that the consumer is “king” or ruler of the market
Consumers are the ones who determine what products will be produced (businesses try to produce the products that people want most)

9. What makes capitalism work? Continued…
4. Markets
Markets are where the prices of goods and services are determined as exchange takes place

10. What makes capitalism work? Continued…
5. Competition
Competition is the struggle that goes on between buyers and sellers to get the best products at the lowers prices
Competition keeps the cost of production low and the quality of goods higher

11. What makes capitalism work? Continued…
6. Voluntary Exchange
Voluntary Exchange is the act of sellers freely and willingly engaging in market transactions
Both the buyer and the seller benefit when goods and services are exchanged

14. QUIZ Tomorrow 25 questions Matching and MC Study Vocabulary
Into to Economics
Making Economic Decisions
Revenue …
Capitalism

15. Who are some Modern Day Venture Capitalist? (2 day mini-project)
Each group will be assigned a modern day venture capitalist
As a group divide up the questions/ assignments listed on the sheet to answer about your person
Research to find the answers using a computer or BYOT
Keep all your information. Tomorrow as a group you will create some type of presentation about your person. More information will follow tomorrow!