Understanding Economic Systems

Read this explanation of the United States economy. American workers are considered some of the most productive in the world. Productivity is the final output after you have considered the hours worked. Productivity in this country has grown because technology has lowered the cost of producing goods and services.

The Nature of Business

Concept Check

  1. Explain the concepts of revenue, costs, and profit.
  2. What are the five factors of production?
  3. What is the role of an entrepreneur in society?