1. Bellringer
1. 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?

2. Label Cornell
notes
• Factors of
production
• “How would I
start or expand
a business”
Questions or
Comments
?????
?????
?????

3. The secret to making money
Profit Motive
• Buy low and sell higher
• People want profits
• Consumer Sovereignty
• Adam Smith
“invisible hand”
• Voluntary trade increases wealth

4. “Free Market” Economic System
• Laissez Faire – French for “leave alone”
• Guided by “invisible hand”
• Stossel clip

5. What keeps our economy moving?

6. • Entrepreneur – French word
New Ideas!
• Person who takes a risk to
Real job creation
start a new business
– OR comes up with a new idea
within a business
Empresario

7. Factors of Production
• Items we need to be in business
• 3 categories

8. Land
• Any natural resource
– Rosemont mine example

9. • People working
• Wages $
• Benefits
Labor

10. Sub note to Labor
Human Capital
• Skills, experience, education a person has
• It’s the reason doctors are paid more than sandwich
artists

11. Capital
• Goods used to create other goods/services
• Usually the largest cost for entrepreneurs
• Explanation for “Capitalism”

12. • Entrepreneur – French word
New Ideas!
• Person who takes a risk
Real job creation
combines land, labor and
capital to start a new
business
– OR comes up with a new idea
within a business
Empresario

13. Let’s build a new Circle K!
1 Land
2 Labor
3 Capital

14. 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