Economics ii pp
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This document summarizes different economic systems including capitalism, socialism, and communism. It discusses the factors of production in a capitalist system such as land, labor, management, and capital. It provides examples of a pizza shop to illustrate how these factors apply. It also describes characteristics of a capitalist free enterprise system such as private ownership, property rights, competition, and consumer choice. The document notes that the US has a mixed economy with roles for both private business and government.
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5- 4 congressional committees
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- 2. Economics is the study of …?
- 3. • How a country chooses to satisfy its’ unlimited wants and needs with its’ limited resources
- 4. Resources • Food • Energy • Labor • Raw Materials • Services
- 5. An economic system is • The system or way a country chooses to use and distribute…(see above slide) • Capitalism • Socialism • Communism
- 6. Capitalism • An economic system based on private ownership of productive property (farmers fields, gold, natural resources) U.S., Germany and Japan
- 7. Four Factors of Production • Land – resources • Labor - work • Management (MGMT) – organize and decide • Capital - $ and machinery
- 12. Capitalist • Has capital and puts it to productive use
- 13. • Another name for a capitalist economy • Free-Enterprise system
- 14. • People are free to start and run businesses • Five characteristics of a free enterprise system
- 15. • private ownership – individuals or groups own most of the means of production
- 16. • guarantee of property rights – right to own property
- 17. • private decision makers – decisions of what to produce left individuals and companies – decisions of how to produce left individuals and companies
- 18. • competition – businesses compete with one another – law of supply and demand
- 19. • freedom of choice – consumers can choose from many products and services
- 20. • Does the United States really a capitalist economy? • Are we really free to do whatever we want with our productive property?
- 21. Mixed Economy • Why is the U.S. called, a mixed economy? • Private business and the government play a part in the economic system • Regulation of business – cars – seatbelts • Government runs business • Government grants license or utility – PECO, Comcast, Pa American Water Company
- 23. Partnership
- 24. Corporation
- 25. • 80% of U.S. business are small businesses
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