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    Capitalism, Free Enterprise, & Market Economy

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    Redeat Moges
    This document defines and explains key concepts related to capitalism and free market economies. It discusses that capitalism is based on private ownership and profit seeking. Free enterprise allows competition with minimal government interference. Capitalism spread based on ideas that people could work for economic gain and governments should have limited economic roles. Key aspects that make capitalism work include private property rights, economic freedom, consumer sovereignty, markets, competition, and voluntary exchange.

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    Capitalism, Free Enterprise, & Market Economy

    Uploaded by

    Redeat Moges
    22 views15 pages
    This document defines and explains key concepts related to capitalism and free market economies. It discusses that capitalism is based on private ownership and profit seeking. Free enterprise allows competition with minimal government interference. Capitalism spread based on ideas that people could work for economic gain and governments should have limited economic roles. Key aspects that make capitalism work include private property rights, economic freedom, consumer sovereignty, markets, competition, and voluntary exchange.

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    This document defines and explains key concepts related to capitalism and free market economies. It discusses that capitalism is based on private ownership and profit seeking. Free enterprise allows competition with minimal government interference. Capitalism spread based on ideas that people could work for economic gain and governments should have limited economic roles. Key aspects that make capitalism work include private property rights, economic freedom, consumer sovereignty, markets, competition, and voluntary exchange.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    22 views15 pages

    Capitalism, Free Enterprise, & Market Economy

    Uploaded by

    Redeat Moges
    This document defines and explains key concepts related to capitalism and free market economies. It discusses that capitalism is based on private ownership and profit seeking. Free enterprise allows competition with minimal government interference. Capitalism spread based on ideas that people could work for economic gain and governments should have limited economic roles. Key aspects that make capitalism work include private property rights, economic freedom, consumer sovereignty, markets, competition, and voluntary exchange.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    of 15

    CAPITALISM ,

    FREE ENTERPRISE, &


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

     Laissez-faire Economics-
    French term that means
    “to let alone”
     Government should not
    interfere in the
    marketplace
    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.
    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
    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)
    What makes capitalism work? Continued…

    4. Markets
     Markets are where the prices of goods and services

    are determined as exchange takes place


    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
    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
    QUIZ Tomorrow
     25 questions
     Matching and MC
     Study
     Vocabulary
     Into to Economics
     Making Economic Decisions
     Revenue …
     Capitalism
    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!

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