How does the u.s. free enterprise system operate?
six main principles
freedom to choose our employment and form businesses
right to private property
the profit motive
the desire by business owners to earn the greatest profit
Economics - the study of why people make one choice rather than another when
buying and selling, spending, and saving
What are goods and services?
Goods - things that can be seen or touched
services - useful work that cannot be seen or touched
What is money?
Money can be anything that most people are willing to accept in payment for goods
What does money do?
money promotes trade
medium of exchange
barter - a system in which people exchange a good or service that they have for
Why do people save and invest?
for a "rainy day" - for emergencies/unexpected things
to buy expensive things
for additional income - people want to earn the dividends and/or interest that
CDs, savings accounts, bonds, and stocks offer
How do different consumers spend their money?
we buy to satisfy needs
no two consumers are the same, but there are some patterns
spending patterns according to age group:
youth (birth - 12 years old)
spending usually done by parents