1. At what age do children start to develop brand loyalty?”
…take a guess….

2. 2 years old!!!! Kids can recognize a brand/ therefore want it
Once the brand light-bulb goes on, children learn to nag (they want validation for recognition)
In a market economy, children are raised to recognize company logos by the media
Free-market consumers have freedom of choice & will choose brands they recognize

3. What do YOUUUU know??? http://www.sporcle.com/games/g/corplogos

4. In the U.S. we have….
A – the freedom to own/ controls the factors of production (market system - capitalism) B – a responsibility to follow government rules/ regulations (command system) C – a “mixed” economy

5. Capitalism: economic system in which private individuals own the factors of production. It is another name for the market system.
We will be playing thisssss later in the year…
Pure capitalism lets people/ businesses make their own economic decisions without gov’t interference

6. Government regulations in business include:
The quality of foods/ drugs
Watch over nation’s banking system
Inspect workplaces for hazards
Protect environment

7. Laissez-faire: economic system in which the gov’t minimizes its interference with the economy (“let people do as they choose” in French)
Adam Smith (1776) said that individuals left on their own would work for their own self-interest… they would be guided by an invisible hand to use resources efficiently, therefore achieving the maximum good for society

8. Does gov’t have a right to control a nation’s resources or should that be left to individuals? WHY???
If you were given the responsibility of writing a NEW CR North handbook, consisting of 10 main rules, what would they be????

9. Free-enterprise system: economic system in which individuals own the factors of production & decide how to use them within legal limits
You have freedom to own/ control the factors of production BUT are not guaranteed to succeed
You still need to follow gov’t regulations to protect your business & the community around you
Example: you know how to wash cars very efficiently so you want to open up a professional carwash in your backyard but cannot (zoning regulations, hazardous waste disposal rules, etc…)
a.k.a…… MIXED ECONOMY

10. Buyer’s Choice
Buyers (not sellers) make the decisions about what should be produced
Example: If a lot of people choose to buy one video game, that company will do well – if no one chooses to buy it, that company will do poorly

11. Profit Incentive
Profit: amount earned after a business subtracts its costs from its revenues
Includes cost of production, wages, rent, interest, taxes
Profit Incentive: desire to make money that motivates people to produce & sell goods & services
This is what motivates entrepreneurs to create new products/ services

12. Private Property: whatever is owned by individuals rather than by government
You are free to buy whatever you have the funds to do so
Land, a business, a car, shoes, etc…
You control how, when & by whom your property is used

13. Can we get another round of Simon Sayssss???
Competition: rivalry among producers or sellers of similar goods & services to win more business
A free-enterprise system encourages competition
Businesses have to keep prices low enough to attract buyers, yet high enough to make a profit
This forces businesses to keep their costs of production as low as possible
Goals = lower prices/ better quality
Can we get another round of Simon Sayssss???
Think K-Mart!!!

14. For Tomorrow…..
Please have the following key terms completed for points DEFINITIONS & FULL EXAMPLES
#1-16

15. The American Economy
__________: economic system in which private individuals own the factors of production. It is another name for the __________________.
Pure capitalism lets people/ businesses make their own economic decisions ________________________________________.
Government regulations in business include:
- The quality of _________/ ___________
- Watch over nation’s banking system
- Inspect workplaces for hazards
- Protect ____________________
___________________________: economic system in which the gov’t minimizes its interference with the economy (“let people do as they choose” in French)
_________________________________________: economic system in which individuals own the factors of production & decide how to use them within legal limits
You have freedom to own/ control the factors of production but are not _________________to succeed
You still need to follow _________________________to protect your business & the community around you
Example: you know how to wash cars very efficiently so you want to open up a professional carwash in your backyard but cannot (zoning regulations, hazardous waste disposal rules, etc…)
Buyer’s Choice
Buyers (not ____________) make the decisions about what should be produced
Example: If a lot of people choose to buy one video game, that company will do well – if no one chooses to buy it, ________________________________
Profit Incentive
___________: amount earned after a business subtracts its costs from its revenues
Includes cost of production, wages, rent, interest, taxes
Profit Incentive: desire to make money that ________________people to produce & sell goods & services
This is what motivates _______________________to create new products/ services
_________________________________: whatever is owned by individuals rather than by government
You are free to buy whatever you have the funds to do so (Land, a business, a car, shoes, etc…)
You control how, when & by whom your __________________is used
____________________________: rivalry among producers or sellers of similar goods & services to win more business
A free-enterprise system encourages competition
Businesses have to keep prices __________________to attract buyers, yet ______________________to make a profit
This forces businesses to keep their costs of production as low as possible
Goals = __________________/_____________________