1. September 13 & 14 (39) Identify characteristics of free enterprise.
10/6/2015
September 13 & 14
OBJECTIVES
REMINDERS
(35) Explain the three basic economic questions.
(39) Identify characteristics of free enterprise.
(42) Compare the American economic system to other economic systems.
DECA dues paid by 9/26
Chapter meeting 9/28
CLOSURE
Describe the ‘miracle’ of making of a pencil as it relates to global economics.
TODAY’S AGENDA
QOTD
Mixed Economies

2. Mixed Economies Quick Review!
10/6/2015
Mixed Economies
INTRODUCTION TO BUSINESS & MARKETING
Quick Review!
What are the three basic economic questions? What do they tell us about a nation’s economy? List the three categories of economic systems.

3. Task #42 Mixed Economies Example:
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Task #42
COMPARE THE AMERICAN ECONOMIC SYSTEM TO OTHER ECONOMIC SYSTEMS.
Mixed Economies
Example:
The U.S.A. is a mixed economy with strong characteristics of a market economy.
Government has some involvement in business.
Government influence is limited by laws and regulations.
No economy is purely any one economic system.
Mixed economies have industries that are either operated or regulated by the government.
They also have individually owned enterprises.

4. Types of Mixed Economies
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Types of Mixed Economies
Capitalism
Socialism
Communism
Nations in the world today typically represent one of three mixed economies.

5. Capitalism Characterized by: Role of Government Private Ownership
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Capitalism
Characterized by:
Private Ownership
Freedom of Competition
Results in Unequal Classes
Role of Government
Support the people
Take care of those who cannot care for themselves

6. Think About It…
Capitalism is characterized by private ownership & competition without government interference.
What is an example of two companies that compete against each other?
Our government also provides support…
What are some of our government-regulated industries?
Agriculture
Pharmaceuticals (FDA)
Health Care (ACA)

7. ensure standard of living
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Socialism
Characterized by:
Government Ownership of Key Industries
Goal of Social Equality
Results in Higher Taxes
Role of Government:
Access to Social Services
ensure standard of living

8. Communism Goal of Economic Equality Results in Class-less Society
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Communism
Goal of Economic Equality
Everyone works & shares.
Results in Class-less Society
Some refuse to work
All share resources
No supervision required

9. Communism Today Characterized by government control Role of Government
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Communism Today
Characterized by government control
Role of Government
Provide for the needs of all individuals
Protect society’s interests

10. Comparing Mixed Economies
What do all three mixed economies have in common?
Role of Government is to
Support People
What is the primary difference between each economy?
Ownership of Resources
Level of Control
Capitalism
Socialism
Communism

11. Task #39 The United States of America
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Task #39
IDENTIFY CHARACTERISTICS OF FREE ENTERPRISE.
The United States of America
Our capitalist economy operates according to the principles of free enterprise.

12. What is Free Enterprise?
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What is Free Enterprise?
Free enterprise is driven by the concept of supply & demand.
Free enterprise is characterized by:
Competition
Freedom of Choice
Private Enterprise
Profit Motive 10

13. I, Pencil
An Essay by Leonard E. Read (1958)

14. Think About It… IN YOUR NOTES
10/6/2015
Think About It…
IN YOUR NOTES
Describe the factors of production required to make a pencil.
Natural
Human
Capital
AT YOUR TABLE
What might cause the pencil-making process to change?
Is there a “master mind” driving the creation of a pencil?

15. I, Pencil, am a complex combination of miracles: a tree, zinc, copper, graphite and so on. But to these miracles which manifest themselves in Nature an even more extraordinary miracle has been added: the configuration of creative human energies--millions of tiny know-hows configurating naturally and spontaneously in response to human necessity and desire and in the absence of any human masterminding!
Leave all creative energies uninhibited.
There's no limit to what we can accomplish.
- Leonard E. Read

16. 10/6/2015
Exit Ticket
FRONT
Explain why people all over the world voluntarily spend hours making parts of a pencil, even if they don’t actually want or need a pencil.
BACK (STICKY SIDE)
Your Name