1. Miss Smith 7 th Grade Civics *pgs. 556-560 (21.1)

2.  The U.S. is considered a capitalist country because we have some government involvement

3.  The U.S. has a free-enterprise economic system  Can own private property and use their own ideas to make money  Consumer- person who buys goods or services  Producer- person or company that provides goods or services

4.  Diagram demonstrating how consumers, producers, and the government exchange resources, products, and money payments  Consists of goods, services, and resources moving in one direction and money moving in the opposite direction

5.  The quantity demanded is the amount of a good and service that consumers are willing to buy at various possible prices  When prices go up, demand drops. When prices drop, demand goes up  Supply is the quantity of goods and services that producers are willing to offer at various possible prices

6.  Economic rivalry among businesses selling similar products

7.  Investing directly in starting new businesses

8.  Brings new products to the market  Encourages people to invest in a company’s stock