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At what age do children start to develop brand loyalty? take a guess.

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2 years old!!!! Kids can recognize a brand/ therefore want it Once the brand light-bulb goes on, children learn to nag (they want validation for recognition) Once the brand light-bulb goes on, children learn to nag (they want validation for recognition) In a market economy, children are raised to recognize company logos by the media In a market economy, children are raised to recognize company logos by the media Free-market consumers have freedom of choice & will choose brands they recognize Free-market consumers have freedom of choice & will choose brands they recognize

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What do YOUUUU know??? http://www.sporcle.com/games/g/corplogos http://www.sporcle.com/games/g/herologo

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In the U.S. we have. A the freedom to own/ controls the factors of production (market system - capitalism) B a responsibility to follow government rules/ regulations (command system) C a mixed economy

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Capitalism: economic system in which private individuals own the factors of production. It is another name for the market system. Pure capitalism lets people/ businesses make their own economic decisions without govt interference We will be playing thisssss later in the year

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Government regulations in business include: The quality of foods/ drugs Watch over nations banking system Inspect workplaces for hazards Protect environment

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Laissez-faire: economic system in which the govt minimizes its interference with the economy (let people do as they choose in French) Adam Smith (1776) said that individuals left on their own would work for their own self- interest they would be guided by an invisible hand to use resources efficiently, therefore achieving the maximum good for society

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Does govt have a right to control a nations resources or should that be left to individuals? WHY??? If you were given the responsibility of writing a NEW CR North handbook, consisting of 10 main rules, what would they be????

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Free-enterprise system: economic system in which individuals own the factors of production & decide how to use them within legal limits You have freedom to own/ control the factors of production BUT are not guaranteed to succeed You still need to follow govt regulations to protect your business & the community around you Example: you know how to wash cars very efficiently so you want to open up a professional carwash in your backyard but cannot (zoning regulations, hazardous waste disposal rules, etc) a.k.a MIXED ECONOMY

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Buyers Choice Buyers (not sellers) make the decisions about what should be produced Example: If a lot of people choose to buy one video game, that company will do well if no one chooses to buy it, that company will do poorly

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Profit Incentive Profit: amount earned after a business subtracts its costs from its revenues Includes cost of production, wages, rent, interest, taxes Profit Incentive: desire to make money that motivates people to produce & sell goods & services This is what motivates entrepreneurs to create new products/ services

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Private Property: whatever is owned by individuals rather than by government You are free to buy whatever you have the funds to do so Land, a business, a car, shoes, etc You control how, when & by whom your property is used

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Competition: rivalry among producers or sellers of similar goods & services to win more business A free-enterprise system encourages competition Businesses have to keep prices low enough to attract buyers, yet high enough to make a profit This forces businesses to keep their costs of production as low as possible Goals = lower prices/ better quality Can we get another round of Simon Sayssss??? Think K-Mart!!!

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For Tomorrow.. Please have the following key terms completed for points DEFINITIONS & FULL EXAMPLES #1-16

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The American Economy __________: economic system in which private individuals own the factors of production. It is another name for the __________________. Pure capitalism lets people/ businesses make their own economic decisions ________________________________________. Government regulations in business include: - The quality of _________/ ___________ - Watch over nations banking system - Inspect workplaces for hazards - Protect ____________________ ___________________________: economic system in which the govt minimizes its interference with the economy (let people do as they choose in French) _________________________________________: economic system in which individuals own the factors of production & decide how to use them within legal limits You have freedom to own/ control the factors of production but are not _________________to succeed You still need to follow _________________________to protect your business & the community around you Example: you know how to wash cars very efficiently so you want to open up a professional carwash in your backyard but cannot (zoning regulations, hazardous waste disposal rules, etc) Buyers Choice Buyers (not ____________) make the decisions about what should be produced Example: If a lot of people choose to buy one video game, that company will do well if no one chooses to buy it, ________________________________ Profit Incentive ___________: amount earned after a business subtracts its costs from its revenues Includes cost of production, wages, rent, interest, taxes Profit Incentive: desire to make money that ________________people to produce & sell goods & services This is what motivates _______________________to create new products/ services _________________________________: whatever is owned by individuals rather than by government You are free to buy whatever you have the funds to do so (Land, a business, a car, shoes, etc) You control how, when & by whom your __________________is used ____________________________: rivalry among producers or sellers of similar goods & services to win more business A free-enterprise system encourages competition Businesses have to keep prices __________________to attract buyers, yet ______________________to make a profit This forces businesses to keep their costs of production as low as possible Goals = __________________/_____________________