freedom of choice to produce, buy, and sell what we like. People are the most
important resource in our private enterprise system. Natural resources and
machinery are important, but they cannot meet our needs if we do not have people,
too. Because of their skill and technology, our workers produce more in less time.
The rate at which goods and services are produced is called productivity. If a
business produces goods and services, it expects to be paid for them. Profit is the
amount of money left over after a business has paid for the cost of producing its
goods or services. The profit motive is the intention to still have something left
after paying the costs of making a product. Profit is the reason a person takes the
risk of starting a business. It is the reward for taking that risk. The concept of profit
is an energizing force in our economy. It encourages people to develop new
products and services in the hope of making a profit. The contest to win customers,
competition, is another feature of economic system. Competition is one of the
important features of the free enterprise system. Because of competition,
businesses are forced to be efficient and to keep their prices low. Competition
certainly helps the consumer. If consumers have choices about where to buy, they
often choose the firm with the lowest prices for the highest quality of goods and
services.
