CapitalismCapitalism

An Overview of the United An Overview of the United States & its EconomyStates & its Economy

19.2 Review 19.2 Review What are the 2 main sectors of the US What are the 2 main sectors of the US economy?economy?

How does the government sector interact with How does the government sector interact with the above sectors?the above sectors?

What benefits and drawbacks are there to the What benefits and drawbacks are there to the foreign sector in our economy?foreign sector in our economy?

On a separate sheet of paper, relate scarcity, On a separate sheet of paper, relate scarcity, specialization, division of labor & specialization, division of labor & interdependence to yesterday’ activity, using p. interdependence to yesterday’ activity, using p. 67. 67.

Feature of Capitalism: definition & example 

Name 1 limit on this Feature

Consumer sovereignty  

 

Free Enterprise  

 

Private Property  

 

Competition  

   

Profit Motive  

   

Voluntary Exchange  

   

CompetitionCompetitionHow do you define it?How do you define it?

What is good about competition?What is good about competition?– Lower pricesLower prices– More variety, selectionMore variety, selection– Better qualityBetter quality– More innovationMore innovationhttps://www.youtube.com/watch?v=8eHRVe77vEQhttps://www.youtube.com/watch?v=8eHRVe77vEQ

What is bad about competition?What is bad about competition?– Bigger companies squash smaller onesBigger companies squash smaller ones– Ads mislead gullible consumersAds mislead gullible consumers– Consumers must take time to comparison shopConsumers must take time to comparison shop

Why are all 3 names correct?Why are all 3 names correct?Free Enterprise:Free Enterprise:

Individuals choose to start & own business.Individuals choose to start & own business.

Capitalism:Capitalism:

Based on private ownership of resources. The Based on private ownership of resources. The more resources owned, the more successful more resources owned, the more successful one is.one is.

Market Economy:Market Economy:

Buyers & sellers voluntarily exchange goods & Buyers & sellers voluntarily exchange goods & services in marketplace for fee.services in marketplace for fee.

Who is Adam Smith?Who is Adam Smith?

Scottish philosopher Scottish philosopher who wrote who wrote The The Wealth of NationsWealth of Nations

Father of Capitalism

Theory of the invisible Theory of the invisible handhand

The wealth of a nation is The wealth of a nation is measure not by gold, measure not by gold, military, or trade but by the military, or trade but by the quality of life of the people. quality of life of the people.

The more freedom people The more freedom people have, the better the have, the better the innovation & profit.innovation & profit.

Laissez faire means the Laissez faire means the government will not government will not interfere in the economy.interfere in the economy.

International Trade, p. 67International Trade, p. 67 Read pp. 707-13 to answer each Read pp. 707-13 to answer each question:question:– What is the difference between exports What is the difference between exports

and imports?and imports?– Explain 3 reasons nations trade.Explain 3 reasons nations trade.– Explain what tariffs and quotas are & why Explain what tariffs and quotas are & why

countries use them.countries use them.– Describe the purpose of NAFTA & EU.Describe the purpose of NAFTA & EU.– What is the difference between a trade What is the difference between a trade

deficit & a trade surplus? Which is best?deficit & a trade surplus? Which is best?

The Types of Economic The Types of Economic Systems, p. 69Systems, p. 69

Discuss traditionalism.Discuss traditionalism.

Go over chart of Go over chart of economics systems.economics systems.

Comparison of systemsComparison of systems

CommunismCommunism

Command Economy ExampleCommand Economy Example

What county’s economy is What county’s economy is representative of this system?representative of this system?

Who makes the economic Who makes the economic decisions?decisions?

What are the advantages?What are the advantages?

What are the disadvantages?What are the disadvantages?

SocialismSocialism

What county’s economy is What county’s economy is representative of this system?representative of this system?

Who makes the economic Who makes the economic decisions?decisions?

What are the advantages?What are the advantages?

What are the disadvantages?What are the disadvantages?

CaptalismCaptalism

What county’s economy is What county’s economy is representative of this system?representative of this system?

Who makes the economic Who makes the economic decisions?decisions?

What are the advantages?What are the advantages?

What are the disadvantages?What are the disadvantages?

Which Is best? Why?Which Is best? Why?

Which of the economic systems is best in Which of the economic systems is best in practical application?practical application?

Explain why its advantages outweigh the Explain why its advantages outweigh the others.others.

Developing vs. Developed Developing vs. Developed NationsNations

Define each term.Define each term.

Give 3 examples of each type of nation.Give 3 examples of each type of nation.

Outline basic characteristics of each.Outline basic characteristics of each.

AssignmentsAssignments

Work on one of these assignments:Work on one of these assignments:– Read 21.1. Complete questions on Demand. Read 21.1. Complete questions on Demand.

This assignment is due Monday!This assignment is due Monday!– Work on your modules. The modules are due Work on your modules. The modules are due

by May 28by May 28thth for the 100 grade and no later for the 100 grade and no later than June 1than June 1stst for the average of your modules! for the average of your modules!

– Notes may be turned in starting 5/22!Notes may be turned in starting 5/22!