McConnell_Brue_Chapter02

Freedom of choice enables owners to employ or dispose

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Unformatted text preview: owners to employ or dispose of their property and money as they see fit. Freedom of choice also ensures that consumers are free to buy the goods and services that best satisfy their wants. Chapter 2 19 Learning Objective 2-2 Slide 20 Key Market System Characteristic #3 Self-Interest becomes the motivating force of the various economic units as they express their free choices. • Self-interest, in this context, simply means that each economic unit tries to achieve its own particular goal. • This same concept allows consumers to make their own self-interested choices in the market as well. • In summary, self-interest creates order in an otherwise chaotic economic process. Chapter 2 20 Learning Objective 2-2 Slide 21 Key Market System Characteristic #4 Competition represents the freedom of choice exercised in pursuit of a monetary return. Inherent within competition of this nature are independently acting sellers and buyers operating in product and resource markets and the freedom for buyers and sellers to enter and exit these markets based on their economic self-interest. Chapter 2 21 Another key m...
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