Monday, 17 October 2011

Definitions from chapter 3

Capitalism/ Capitalist Economic System:  is that most of the goods and services people need and want are produced by private companies.  (Also be aware of Socialism: production of goods and services is in the hands of the government.)

Capital: is the money that has been invested into a business venture to start it up and keep it open.

Profit: is the money the business owner makes after paying the investment and paying other expenses.

Standard of Living:  is how much 'buying power' a family has.

Personal Capital: includes anything you might have to improve your economic situation.

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