Overview
Private ownership of resources is a fundamental concept in economics that allows individuals and businesses to own and control property. This system creates incentives for investment and innovation, leading to economic growth and efficient resource allocation. In a market economy, private ownership ...
Key Terms
Example: Owning a house gives you property rights to live in and sell it.
Example: In a market economy, the price of apples is determined by how many people want to buy them.
Example: Tax breaks can serve as incentives for businesses to invest in new technology.
Example: A company allocates its budget to different departments based on their needs.
Example: Two coffee shops competing for customers by offering better prices.
Example: A country experiences economic growth when its GDP rises.