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economic issues

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economic issues
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  • Hi Honey! How was school?
  • That's okay, I can tell you about it over a snack.
  • Woof
  • It was good, we learned about The Phil. economic system but I still don't really understand it.
  • Thank you! Yeah, Our teachersaid that there are 4 important principles: private property, freedom of choice, profit, and competition.
  • Here is your drink. Now why don't we talk about the Phil. economic system! What did you learn about?
  • Oh, so like our TV? we bought it and now we use it, and if we wanted to we could throw it away!
  • That's exactly right!
  • To have private property is to own, use, or dispose of things of value.
  • Wow, what is freedom of choice?
  • Oh! Its like when you buy a house.
  • It means that you can make economic decisions on your own and accept your consequences.
  • So whats up with profit?
  • That is the money that businesses get when they sell products after subtracting the cost to make the product.
  • Thanks mom! I understand it much more now!
  • No problem Honey!
  • The final principle is competition, that is when there is rivalry between businesses for their goods or services.
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