Understanding Economic Units and Activity Flow

A. Private property is any good that is owned by an individual or a business.
B. Public property is any good that is owned by the government.
C. Households are the economic unit of one person or more that sells resources and buys goods and services.
D. The circular flow of economic activity is the economic relation that exists between different economic groups in an economy.
There is an incentive from the U.S. government to buy electric vehicles instead of gasoline driven vehicles.
The economic activities the government is involved with is the benefits it gives to the producers and consumers of the market in exchange for taxes.
Goods are produced for the consumers wants.
Everyone has the right to property this does not mean that the will

Section 3:
Ethics is the principles of conduct.
I agree with the statement that the majority always end up buying the goods the would prefer, while the minority end up buying the goods the do not prefer, because the majorityś needs always outweigh the minorityś unless the minority can become the majority. 4. A. The responsibility of the right to voluntary exchange is that both parties remain truthful during an exchange. B. The responsibility of the right of private property is to use that property for legal purposes. C. The responsibility of the right to compete is to compete fairly and in a legitimate manner 5. I agree with this statement because the way our monetary system is set up is to fuel greed and desire. Two emotions that are not quite ethical, the book may be worse but if it is more popular it will do better. For example Mein Kampf.

Section 4
An entrepreneur develops new products in order to profit from that product.
An entrepreneurś risk-taking activities might benefit society by creating a new product that might further the development to the country such as products that D.A.R.P.A. makes.

Section

An non-excludable public good of which one person's consumption does not take away from another person's consumption G. A negative externality is an adverse effect of an act that is felt by others H. A positive externality is a beneficial side effect of an action that is felt by others.
A. a pair of shoes- private
B. sunshine-public
C. pen- private
D. a pizza- private
E. national defense- public 4. Non-excludable public goods are paid for by taxation through the government. 5. Taxes can deal with negative externalities by make it discouraged to produce products with negative externalities.

Assessment Questions:

Good will be produced in a free enterprise economy by the individuals who own and manage the business firms.
The five major features of a free enterprise economy are: private property, the freedom to choose, voluntary exchange, competition, and economic incentives.
The message that it should be coming through loud and clear to Company Z is their products are not selling enough and should lower their prices.
An entrepreneur is a person who is a special talent for searching out and taking advantage of new business opportunities, as well as developing new products in a new way of doing