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