a. 1. Private property-the right to own resources and bequeath property 2. Freedom of enterprise-own a business
3. Freedom of economic choice-work/not work, spend/not spend 4. Role of self-interest
a. People are by nature economic creatures
b. Self-interest is a fundamental characteristic of people 5. Competitive market system
a. Many buyers and sellers
b. Market participants, buyers and sellers, have little control over price c. Competition performs the organizing and controlling functions for a market economy 6. Limited government
b. Mercantilism: the law gives preference and special benefits to the sector of the economy owned by the government. b. Free-market capitalism: A system of economics that minimizes government intervention and maximizes the role of the market. Laissez-faire is a more extensive form of free-market capitalism where the role of the state is limited to protecting property rights Pros The pros and cons of capitalism versus socialism have been debated for hundreds of years and there is a lot of misinformation out there. Capitalism increases the opportunities in the marketplace for personal economic growth. It increases opportunities for entrepreneurs to increase their personal wealth and for societies to grow as well. Hard work is rewarded under a capitalist economy. In a capitalist economy, consumers can work toward riches and financial freedom. A competitive market results from capitalism and consumers are presented with a wide array of products and services to choose from. Consumers and companies regulate the free market. This is often seen as one of the strengths of a capitalist society. Cons Capitalist economies are money-driven without much regard for people unless they are owners or shareholders of business firms. In a capitalist economy, there is fierce competition and, perhaps, unfair competition. There is a tendency, in capitalist economies, for big companies to get bigger and for...
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