chapter 19, section 3 capitalism and free enterprise
TRANSCRIPT
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Chapter 19, Section 3Chapter 19, Section 3Capitalism and Free Capitalism and Free
EnterpriseEnterprise
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Main Idea:Main Idea:
• The U.S. has a free enterprise system, or capitalistic system.
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I. Features of Capitalism (434-437)
***U.S. Economy is built on capitalism and free enterprise.***
A. Capitalism- Citizens and owners control production.
B. Free Enterprise- Free competition between businesses!
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C. Consumer Sovereignty- consumer is the ruler of the market, they determine what is produced.
*** Choice is key to capitalism!!! We have the right to work in whatever type of job we want, wherever we want!!!****
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D. Private Property Rights- we are free to own, use, dispose of things that are ours as long as they don’t interfere with others!
E. Competition- Struggle between buyers and sellers to get the best products at LOW prices
*** Capitalism thrives off of competition***
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***Profit- the money left over after all costs of production have been paid***
***Profit Motive- driving force behind the free enterprise system and capitalism***
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II. The spread of capitalism (436-437)
A. Capitalism has developed gradually over hundreds of years.
B. Adam Smith
1. Scottish Economist
2. Author of Wealth of Nations
3. He scientifically described economics for the first time.
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4. He believed that individuals seeking profit is beneficial to a society.
5. Laissez-faire- “To let alone”
***Laissez-faire Economics***
6. He believed government should not interfere with the market-place. Government’s job is to create free competition!
*** Many American Founders were influenced by Smith’s book!!!***
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Mini Quiz!!!Mini Quiz!!!
1. Free enterprise is competition between businesses…..Is it good or bad?
2. What is profit?
3. Who is Adam Smith?
4. What is Laissez-faire Economics?
5. Who did Adam Smith influence?