Download Capitalism

Capitalism
EQ: According to Adam Smith, how is
the Profit Motive a key component of
Capitalism?
Four types of Economies
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Market
Mixed Market
Command
Traditional
For each type, think of one advantage and one
disadvantage.
What makes Capitalism Work?
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3.
4.
5.
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Markets
Economic Freedom
Private Property Rights
Competition
Profit Motive
Voluntary Exchange
History of Capitalism
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Adam Smith: In 1776, he wrote The Wealth of Nations,
which outlined the capitalist system for the first time.
Invisible Hand: Theory that stated producers and
consumers are guided or motivated by something
unseen……..Profit Motive.
Laissez-Faire Economics: French term that means
“to let alone.” Smith used this term to describe an
economy in which the government was not involved
and allowed producers and consumers to make their
own choices.
Your Activity
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Writing Assignment with 2 parts:
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Describe what you think our country would be like if there
was no profit motive or private property and the government
owned everything and gave us what it thought we needed free
of charge.
Consider the current debate over Healthcare. Some believe
the government should take over and be in charge with very
few or no private health providers. Others feel that this
would eliminate choices and competition. What are the
advantages of having choices and competition in a
Capitalistic Economy?