4 key Institution s of Capitalism Institution: established behavior practices and patterns that form the foundation for community life. Think about education…teacher, classroom of students, homework, paid for by govt., etc

it exists where, when, and however buyers and sellers interact to exchange goods, services, or resources based on voluntary exchange Flexible pries that change in response to changes in supply and demand Markets

Rights of people to themselves(including the value of their labor) and their possessions Private property

Both the governors and the governed are subject to the law. Rule of law

People who are motivated by profit to assume the risk of production People who are motivated by profit to assume the risk of production.. An important tool is this is innovation Entrepreneurship