Capitalism

Would you prefer to work hard for the stuff you want or not work so hard but have your basic needs provided?

What is capitalism?Two other names for capitalism?

Warm-up:

Economic system based on free markets, where supply and demand set prices for goods, labor and servicesPrivate citizens own factors of

productionMarket system/free enterprise system

Warm up Answers

Today I will be able to analyze the four important characteristics of a capitalist economy by constructing a short response.

Content Objective

Choose your jobMind your own business

Think, pair, share: What factors do you consider when looking at a career-type job?

1. Economic Freedom

Many opportunities to sell products

2. Voluntary Exchange

The right to control your possessions e.g. homes, cars, ideas, and abilities

Gives incentive to work

3. Private Property

The drive to improve your material well-being drives capitalism.

4. Profit Motive

Free markets set prices for goods, services, labor, without interference from government

Free Markets

Supply and DemandPrices are set without interference

Low supply=high demand= higher prices

High supply=low demand= lower prices

CapitalResources necessary for a business to operate, including

Money Knowledge Property,

buildings, machinery, etc.

LaborPeople willing to work for market wage

When is the market wage too low or too high?

ReadPages 33-41

What are the benefits of capitalism? What are the negative aspects of capitalism? Explain your response with plenty of facts and examples.

Exit Ticket- SCR