Bellringer 8/13 - 8/14/20121. Write a business idea you think might

make you wealthy.2. What specifically would you need to

start this business? (for example, to start a Landscaping company would

need a truck, shovel, and some rocks)

3. Why do you think most people just end up getting a job, instead of being

entrepreneurs?

Profit Motive• Buy low and sell higher

• People want profits

• Consumer Sovereignty

• Adam Smith “invisible hand”

• Voluntary trade increases wealth

“Free Market” Economic System• Laissez Faire – French for “leave alone”

• Guided by “invisible hand”

• Stossel clip

Mixed Economies• Modern countries have the government help

some• For example….

• Schools• Roads• Healthcare• Child care• Space Travel

What economic opportunities do you see in this picture?

May 2008

What keeps our economy moving?

Factors of Production• Items we need to be in business

• 3 categories + 4th idea

Land• Any natural resource

– Rosemont mine example

Labor• People working

• Wages $

• Benefits

Sub note to LaborHuman Capital

• Skills, experience, education a person has• It’s the reason doctors are paid more than sandwich

artists

Capital• Goods used to create other goods/services

• Usually the largest cost for entrepreneurs

• Explanation for “Capitalism”

Let’s build a new Circle K!

• Land

• Labor

• Capital

New Ideas!Real job creation

• Entrepreneur – French word

• Person who takes a risk combines land, labor and capital to start a new business– OR comes up with a new idea

within a business

Empresario