We look at a modern economic system that put private businesses in the hands of people and not governments.

Capitalism is an economic system that is relatively young. It has been in existence for a few hundred years and is considered to be the baby of social-economic systems. In this system, most of the land is owned by individuals and not governments. Capitalism is a free market economy which means that prices and value tend to fluctuate over time. Prices for goods and services move up as they demand for them also grow. The same is true of the reverse situation.

Students will learn modern aspects of this economic system including the concepts of supply and demand, movements within good and services. We also analyze the good and bad of it. Just because our country follows this system, doesn't mean we should not demand the advantages and disadvantages.

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Capitalism Reading Passage

The opposite of capitalism is a command economy. In a command economy, the government determines what products are available for sale and how much they should cost.

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Capitalism - Multiple Choice Questions

Today, most countries have what is actually a mixed economy.

Supply and Demand

Supply is how much of a product is available to be purchased. The law of supply says the higher the price of a product gets, the more the product will be produced for sale. Demand is how much of a product that people want to buy.

Supply and Demand - Short Answer Questions

What are the four ways that supply and demand can affect the price of a product?

The History of Capitalism

Capitalism emerged in the mid 1600s.

QUESTIONS: The History of Capitalism

Why was the transition from feudalism difficult for the serfs?

The Main Features of Capitalism

The main motive of businesses (the producers of goods and services) is profit. Both individuals and businesses are allowed to own private property.

QUESTIONS: The Main Features of Capitalism

What is the main motive of business in a capitalist system?

Advantages of Capitalism

In a capitalist society, businesses are owned and managed by the people, rather than by the government.

QUESTIONS: Advantages of Capitalism

A capitalist society is characterized by freedom. Individuals are able to choose what they want to buy.

Disadvantages of Capitalism Reading Passage

In a system that is motivated only by profit, like capitalism, human welfare can sometimes be neglected or ignored.

QUESTIONS: Disadvantages of Capitalism

How do very powerful companies make it difficult for hardworking people to succeed in starting companies of their own?

Adam Smith and The Wealth of Nations

Gross Domestic Product was Smith's idea for how to measure how much wealth a nation had.

QUESTIONS: Adam Smith and The Wealth of Nations

The invisible hand was made up of a combination of market forces, like supply and demand, which worked together to make the market efficient.

Proponents of Capitalism Reading Worksheet

Conservatives tend to favor as little government intervention into the economy - and people's lives - as possible.

Proponents of Capitalism - Short Answer Questions

What are the three primary opposing views on how much a government should be involved in the economy?

Alternatives to Capitalism

Many countries successfully use capitalism as their economic system, but some countries do not like capitalism.

Alternatives to Capitalism- Multiple Choice Questions

One alternative to capitalism is called socialism. Socialism is a command economy that is based on the idea of cooperation.

The Role of Government in Capitalism

A lot of money, called capital, is required in order to start a business, and starting a business is risky.

The Role of Government in Capitalism - Short Answer

Describe how the U.S. government supports our economy with regards to our money system.