Professional Documents
Culture Documents
Copyofreadingnotesunit 1 Foundationsofeconomics
Copyofreadingnotesunit 1 Foundationsofeconomics
of making one choice over another, including the loss of time, energy and a derived
pleasure/utility.
11. Production Possibilities Curve is a curve depicting all maximum output possibilities
for two or more goods given a set of inputs.
in a free market. Capitalism matters because this can lead to competition since each private
company puts in their own price, also the government has no involvement in price decisions.
2. Laissez-Faire can be described as running businesses without government intervention
or regulation. As a result, this caused many businesses in the Industrial Revolution to gain lots of
money but also allowed them to exploit workers.
3. Free-Enterprize can be described as a system that has few restrictions given to business
activities and ownership. This matters because governments tend to have minimum ownership of
enterprises in the marketplace, this can lead to businesses having more control in the industry
area with every limited regulations and chargers given by the government.
4. Freedom of Choice can be described as consumers having the choice to decide
something they are willing to spend. This matters because with variety companies and prices a
consumer can lead to making a choice that can affect a company that wasnt decided.
5. Profit can be described as money gained from an amount of money income from a
business, investment, or product. This can lead to money spending which can help the economy
by creating more products, jobs, and economic growth.
6. Profit Incentive is having a motive to doing something in order to gain a profit in return
such as doing your homework in order to achieve a higher grade. This matters because during the
process we can either lose time, energy, and knowledge when you could've been doing something
else to also gain a profit.
7. Competition can be defined as trying to reach goals such as increasing profits, market
share, and sales volume by varying the elements of the marketing mix: price, product,
distribution, and promotion. Competition can lead to wanting to motivate business, workers, and
the government to continue to do better to provide quality goods and services to consumers.
8. Private Property is a property that is owned by an owner and is non-government land
and not open to the public. Private Property matters in our economy because many people take
real estate as an opportunity for investment that can help the local economy by evaluation.
9. Economic Efficiency can be described as for example if any changes made to assist one
person it could harm another. Therefore, this matters because as a country we need to have
balance but we also need to protect our individuals, so this can have an impact on a steady
economy.
10. Economic Growth can be described as an increase in the amount of goods and services
produced per head of the population over a period of time. This matters to the economy because
the government can update the status of the overall growth in economy.