1. Capitalism
Mr. Hopkins

2. Vocab. for section Here are the vocabulary words for this section:
Free enterprise System – Private ownership of capital goods, not be government directive

3. Economics Role of Economic Systems
What and how much should be produced
How goods/services should be produced
Who gets the good/services produced

4. Capitalism* 6 main characteristics Economic Freedom Markets
Voluntary Exchanges
Profit Motive
Competition
Private Property Rights

5. History of Capitalism*
Origins (founded by Adam Smith)
Built off the idea of laissez-faire economics. (HANDS-OFF from government.)
Belief that people will work harder when there is economic gain.
Free Enterprise in the United States
Government encourages competition

6. History of Cap.* Governmental Influence
The government may regulate certain aspects of business. (i.e. – Food & Drug Act/ Social Security/ Meat Inspection Act)

7. Example*
Big Bird goes out and attempts to buy the new Tupac CD to crunk it for a par-tay this weekend. He goes to Store #1 and finds it is sold out. He goes to Store #2 and finds it sold for $35. He goes to Store #3 and finds that they have it but at double the cost of Store #2.
Does this fit the example of capitalism? If so, what principles? If not, why not?