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Industrial Capitalism and Society1 This is history.

Industrial Capitalism and Society1 This is history.

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Industrial Capitalism and Society1 This is history.
Industrial Capitalism Industrial capitalism refers to an economic and social system in which trade, industry and capital are privately controlled and operated by individuals for profit. The essential feature of capitalism is the motive to make a profit. As Adam Smith, the 18th century philosopher and father of modern economics, said: "It is not from the kindness of the butcher, . or the baker that we expect our dinner, but from the fact that they are thinking of their own [self-interest)." Both parties (people) to a voluntary exchange transaction have their own interest in the outcome, but neither can obtain what he or she wants without addressing what the other wants. It is this rational self-interest that can lead to economic prosperity. Working it out.. Imagine the scenario above with the butcher. Why does Adam Smith declare that butcher and bakers are not selling their products out of the "kindness" of their hearts? In a transaction between the customer and the butcher, what does each party need to give up in order to get what they want? Understanding Supply and Demand Kraft Macaroni & Cheese Electric Scooter $4.50/single box $198.00 macarons CHeese $10.98/3 pack GAng 1. Why does a box of mac n cheese cost significantly less than an electric scooter? Explain. 2. Why do you think the price of a box of mac n cheese costs around $4.50? How is that price set? Could you find a lower price for this item? A higher price? Why?
Transcribed Image Text:Industrial Capitalism Industrial capitalism refers to an economic and social system in which trade, industry and capital are privately controlled and operated by individuals for profit. The essential feature of capitalism is the motive to make a profit. As Adam Smith, the 18th century philosopher and father of modern economics, said: "It is not from the kindness of the butcher, . or the baker that we expect our dinner, but from the fact that they are thinking of their own [self-interest)." Both parties (people) to a voluntary exchange transaction have their own interest in the outcome, but neither can obtain what he or she wants without addressing what the other wants. It is this rational self-interest that can lead to economic prosperity. Working it out.. Imagine the scenario above with the butcher. Why does Adam Smith declare that butcher and bakers are not selling their products out of the "kindness" of their hearts? In a transaction between the customer and the butcher, what does each party need to give up in order to get what they want? Understanding Supply and Demand Kraft Macaroni & Cheese Electric Scooter $4.50/single box $198.00 macarons CHeese $10.98/3 pack GAng 1. Why does a box of mac n cheese cost significantly less than an electric scooter? Explain. 2. Why do you think the price of a box of mac n cheese costs around $4.50? How is that price set? Could you find a lower price for this item? A higher price? Why?
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