Intro to Business A First Group Exercise - The Role of Profits
1. Explain why showing profit or loss is so useful to both society and business. In other words, what does profit signify to both society and businesses? Use the concept of "price signal" to add value to your answer. Any news that illustrates your ideas here?
2. Distinguish between the game of Monopoly and a zero-sum game, and real-life business with the potential to create new wealth. What example can you find that demonstrates adding wealth to the "economic pie"?
3. Discuss a few main points about the network of prices that arise from voluntary exchanges among buyers and sellers. What kind of setting - political and economic - is needed for this network to function accurately? Mention some examples of contrasting countries or governments to show how different settings help or hinder price networks.
4. How does a free economy contribute to a better environment for reducing poverty and improving economic and social standards of living? What recent news can you mention to illustrate these advantages of free markets over dictatorships or command economies?
Acton Notes Newsletter "The Capital in Capitalism"
5. Define capitalism from the Newsletter's point of view. What is this surplus value idea, and where does new wealth's come from? If you started a business, explain how you would add value to the economy.
Attachment:- Assignment File.rar