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Bellringer1. 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. Think of two reasons most people just
end up getting a job, instead of starting a new business?
Label Cornell notes
• Factors of production
• “How would I start or expand a business”
Questions or Comments
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The secret to making moneyProfit 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
What keeps our economy moving?
New Ideas!Real job creation
• Entrepreneur – French word• Person who takes a risk to
start a new business– OR comes up with a new idea
within a business
Empresario
Factors of Production• Items we need to be in business• 3 categories
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”
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
Let’s build a new Circle K!
1 Land
2 Labor
3 Capital
Group summary• Write 4 “how” or “why” questions• One question for each factor of production +
entrepreneur• How does an entrepreneur start a business?• Must include land, labor and capital