Wow did you understand what the professor taught today? I couldn't grasp anything about the U.S. Economic System. I am going to fail!
Don't worry! I understood and remembered a thing or two from my high school Principles of Business Class. Its simple there are four important principles to know
First there is Private Property; things of value that you can own use or dispose of. For example you can own a house, phone or something of your own invention. These things can be used, sold or disposed of.
Freedom of Choice relates to the economic decisions that businesses or individuals make for which they must accept the consequences of the actions. Say I were to buy and own a house; I would have to deal with all damage, payments and future investments since this decision was made independently
Businesses make profit by supplying to satisy needs. For example a restaurant would supply meals to their customers in order to make a profit which is the value of the sale after subtracting the production and business operation costs. Profit helps the economy become stronger through the satisfaction of needs, investment of money and development of new products
The last principle we learned about is competition. This is the rivalry among businesses to sell their goods/services to buyers. This is necessary in order to encourage businesses to improve quality, better their services, keep reasonable prices and produce new things.
Now does it make sense?
Yes, thank you! Now I am confident that I will do well on the exam.