Hey Jack, I need help studying for my business test on the U.S. Economic System, do you think you could help me?
The second part of the U.S. Economic System is Freedom of choice. Which means you can make economic decisions independently and accept the consequences of those decisions.
So an example of Freedom of choice is buying, and selling. Also owning property?
Yes, that is correct!
The final part of the U.S. Economic System is Competition. Which is the rivalry between businesses to sell their products to buyers. This helps businesses improve quality, offer better service, keep prices reasonable, and produce new things.
I understand because businesses want to outsell their competitors, so they can make a Profit.
Exactly Bob, I think you're ready for your test tomorrow.
The first part of the U.S. Economic System is private property. It means you can use, own, and dispose of things of value. For example you can own a house, or throw out an old TV. Also, if you invent something you have the right, to own, use, and sell.
Hmmm, ok I think I understand.
The third part of the U.S. Economic System is Profit. Which is the money left over from sales after all the costs of operating the business have been subtracted. Many companies want to work hard and make a higher profit, which is called profit motive.
That's correct Bob, I think you're starting to understand this.
That makes sense because the more money the company makes, it can help them invest money, satisfy wants, and develop new products.
Thanks for helping me study for my business test Jack. Thanks to you I think I will do great tomorrow.