After school, my friend, Julia, and I decided that we wanted to learn more about economies, so we began to explore the principles of capitalism.
The first principal we discovered was freedom of choice, which is a person's right to make decisions, as well as accept the consequences of their decisions. Freedom of choice is beneficial because it allows people to have more influence over their own lives. Julia and I practiced this principle by choosing to go buy clothes at the mall, and excepted the consequence that we didn't have much money left afterwords.
Next, we discovered the principle of profit. Profit is the money businesses make from sales after their operating costs have bee made. When Julia and I made a purchase at a news stand, the profit was the money that the news stand gained from our purchase, not including the amount of that money that went towards operating costs. Profits are beneficial because they help keep businesses running, and allow businesses to pay their workers.
Julia and I then learned about the principal of capitalism called competition. Competition is a rivalry between two similar companies in which both try to offer the best quality, service, and price. Julia and I learned about this when we visited two popular restaurants.
Through our experience, we learened that competition is a good thing for customers because it helps to keep prices low and quality high.
Finally, we learned about the principle of private property, which is the right to use, own, and dispose of things of value. Private property helps people make decisions about their belongings and practice freedom of choice.To learn more, we asked my parents about their private property, like our house, and then we discussed more about the principles of capitalism.