Capitalism

Capitalism

An economic system where the people make the decisions.

What is Capitalism

• In this system you and me, the buyers and sellers, make the decisions about our economy in free markets

• There is little government interference in the economy.

• However, the government may provide for things like schools, roads, and the military

Multiple Choice

Who makes the decisions in a captialist economy?

• The People or Citizens (You and Me)

• The Government

How are prices set?

-Prices are determined by what is called "supply and demand".

-That's a fancy term that means we determine prices by what we buy and how much we buy.

-For example if there is high demand for a product or service the price will be high, if there is not the price will be low.

How are prices set?

-Another example would be if there are a lot of people going out on a date at McDonald's for a Big Mac the price will go higher and more will be made, but if no one is going on a date to White Castle for sliders the demand will be lower and so will the price of the sliders.

Multiple Choice

How are prices set in a capitalist economy?

• Prices are set by what people buy and sell

• Prices are set by the government

Who owns the business?

-The private citizens own the businesses.

-You and I can start a business

-An entrepreneur is simply a business owner

-We can then decide what to produce, how much to produce, and the price to sell it

What Countries have Capitalism as their economy?

• The United States

• Australia

• Japan

• The United Kingdom

• Canada

• And others too

Multiple Select

Check all the countries that have capitalism as their economic system.

• The United Kingdom

• The United States

• Cuba

• Japan