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?Circular flow

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 3 “how” or “why” questions

• How does an entrepreneur start a business?