Mr. Loya - PPT 2.1 - Capitalism

Open Ended

Prompt

Imagine two businesses sell the exact product in one town. One business improves quality and lowers prices, while the other one does not.

In 2–3 complete sentences, explain:

What do you believe will occur to each business over time, and

Why consumers would respond the way they do.

Word Cloud

What words or ideas do you already associate with capitalism?

Multiple Choice

What is one significant way the free market impacts the quality and price of goods in a capitalist economy?

• It encourages businesses to improve quality and lower prices to attract consumers.

• It forces all businesses to sell the same product at the same price.

• It eliminates competition between businesses.

• It guarantees equal profits for all businesses.

Fill in the Blank

Capitalism promotes ______ markets, where prices and trade are controlled by competition and consumer demand rather than the ______.

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Multiple Choice

How did Adam Smith’s ideas about capitalism differ from the principles of mercantilism?

• Smith supported government control of trade, while mercantilism promoted free markets.

• Smith promoted free markets and competition, while mercantilism relied on government control and set prices.

• Both Smith and mercantilism encouraged limited competition.

• Smith believed in high taxes and tariffs, while mercantilism supported low taxes.

Dropdown

Type questionIn a free market, businesses that fail to meet consumer demand will most likely ​

Select answer

.

Multiple Select

Which of the following are features of a free market as described by Adam Smith?

• Government sets prices and wages

• Businesses compete to meet consumer demand

• People can invest and innovate freely

• Production costs are increased

Fill in the Blank

Adam Smith introduced the concept of the Invisible ___ to describe how self-interest guides the economy.

Open Ended

Describe how the 'Invisible Hand' aligns individual profit motives with societal needs, using an example from the lesson.