1. 6 FEATURES OF CAPITALISM DON ANDERSON

2. BASIC CHARACTERISTICS DESCRIBED BY ADAM SMITH 1.Private property-the right to own resources and bequeath property 2.Freedom of enterprise-own a business 3.Freedom of economic choice-work/not work, spend/not spend 4.Role of self-interest a. People are by nature economic creatures b. Self-interest is a fundamental characteristic of people

3. BASIC CHARACTERISTICS DESCRIBED BY ADAM SMITH 5. Competitive market system a. Many buyers and sellers b. Market participants, buyers and sellers, have little control over price c. Competition performs the organizing and controlling functions for a market economy 6. Limited government ("Laissez-faire ") a. Government should let markets be with a hands-off philosophy) b. Acceptable government involvement has become an important political question in the United States during the last few decades.Laissez-faire

4. MODERN CAPITALISM HAS ADDITIONAL FEATURES 1. Complex Market System Setting Prices 2. Importance of Capital Goods and Technology 3. Specialized a. Complexity requires company produce limit their product lines b. Division of Labor allows specialization by ability and training.