Mom! I overheard someone talking about the principles of the U.S. Economic Systems in school today. Could you tell me more about that?
Of course I can! There are four main principles...
What's the first principle?
The first is the principle of private property. This means you can have, use, and get rid of things as long as it is within the law.
Can you tell me about the second principle while I go inside to make a snack?
Of course I can! The second principle is freedom of choice. This means you have the right to make your own economic decisions, but you also have the responsibility of facing the outcomes of those decisions.
The third principle is about profit. Profit is the money that businesses have left over after they've paid off all of their expenses.
That's interesting! What about the third principle?
Yes, that's right! The last principle is competition. Businesses will compete against each other to see who can sell the most goods and services.
So one main goal of having a business is to make a large profit? What's the last principle?
Of course! I'm happy to help. Let me know if you have anymore economic questions for school.
Thank you for teaching me about the principles of the U.S. economy! I loved learning about it and I can't wait to tell my friends at school tomorrow.