1. Capitalism Chapter 19 Lesson 3

2. Capitalism System where private citizens own and use the factors of production in order to seek a profit.

3. Free Enterprise Competition is allowed to flourish with little government interference

4. Market Where prices of goods and services are determined as exchange takes place. Impacts you: No one tells you what to purchase or what you have to pay. You get to decide if you want to buy something or not. This gives you a place to buy and sell goods and services.

5. Economic Freedom Each person can make their own economic decisions Impacts you: You get to decide…. What job? Where and when will I work? What will I buy?

6. Private Property Rights The freedom to own and use and dispose of our own property. Impacts you: You can own your own property and do what you want with it. This gives us incentive to work, save, and invest because we can keep the gains.

7. Competition The struggle between buyers and sellers to get the best product at the best price. Impacts you: This keeps prices low and quality products available to you. gives you a variety of products to choose from.

8. Profit Motive People start new ventures to make a profit (the money left over after all costs of production have been paid) Impacts you: You can own a business and make as much money as you can. This helps the growth of the free enterprise system.

9. Voluntary Exchange Buyers and sellers freely and willingly exchange in the market. Impacts you: Both you and producers give up something and as a result you each benefit.

10. History of Capitalism 1776 Adam Smith Individuals left on their own to work would work for their own self-interest or well being. We do work because it benefits us and the people around us

11. History of Capitalism Laissez-faire (to let alone) Government should not interfere in the marketplace. Producers and consumers will work it out on their own!