Miscellaneous Questions

Under the free enterprise, capitalist economy of the United States, land and capital goods used in the production of economic output are owned primarily by private entities as opposed to governmental entities (3:27). The private ownership of these factors of production places in the hands of the private sector decisions related to what goods to produce, how much of a good to produce, and how other goods and services will be allocated to various production activities. The economic output produced by the owners of the land and capital goods employed in the production process also becomes the private property of these private entities (3:28). Thus, subsequent to a requirement to pay for any factors of production used but not owned by these private entities (labor as an example), the private entity owners of the economic output are free (within limits imposed by restraint of trade laws and national security considerations) to dispose of the economic output as they wish. These characteristics of economic production allow the private entity owners of the economic output to earn a profit on the output. This profit serves as an incentive to reinvest some portion of that profit for the production of additional economic output. As other private entities also are free to behave in a similar manner, competition develops in profitable areas of economic output. Competition, in turn, spurs producers to seek p

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in general terms, a free market economy. In a free market economy, prices are determined in the market by the forces of supply and demand, without government intervention·for the most part. Prices for public goods·those which cannot be with held from one individual without withholding them from all·are not determined solely by market forces in a free market economy. One of the theoretical economic concepts associated with the use of prices is that of economic efficiency (6:82). Economic efficiency demands that any given output be produced at minimum cost. To produce goods at minimum cost means that both waste and technological inefficiency must be avoided. Prices are used to find the cost-minimizing production processes. In the allocation of economic resources, economic efficiency demands that it must not be possible to change existing resource allocations in such a way that someone is made better off and no one worse off. Another theoretical concept associated with the use of prices in a free market economy is equilibrium (5:68). A free market economy is said to be in equilibrium when the independently taken decisions of households firms are compatible. To achieve this equilibrium, prices must be set at a level such tha
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Some common words found in the essay are:
Reserve System, Curve Hypothetical, Starbuckss Coffee, Service IRS, CafT Mocha, Wages Money, Employment Money, , NNP Using, Demand Definition, capital gain, federal reserve, federal reserve system, reserve system, free market, free market economy, market economy, demand curve, national income, economic output, real capital, real capital gain, ten dollars, price elasticity demand, sales price dollars,
Approximate Word count = 4572
Approximate Pages = 18 (250 words per page)

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