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~The Private Sector Economics
What is it? <ul><li>The part of an economy that is owned by individuals and operated for their personal benefit. </li></ul...
Private Ownership-Benefit <ul><li>Private Gain! </li></ul><ul><li>Private goods=goods that are privately owned and used to...
Private Sector Exchanges <ul><li>Exchange=the giving of one thing in return for some other thing.  Both parties benefit! <...
Competiton <ul><li>The rivalry between two or more parties to gain benefits from a third party. </li></ul><ul><li>Competit...
Private Sector Markets and Consumers <ul><li>Market=exchange activities between buyers and sellers of goods and services. ...
Markets <ul><li>Establish and provide price information </li></ul><ul><li>Establishes prices through competition </li></ul...
Private sector markets and producers <ul><li>The success of producers depends on their ability to satisfy the wants and ne...
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Chapter 4~the private sector

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Chapter 4~the private sector

  1. 1. ~The Private Sector Economics
  2. 2. What is it? <ul><li>The part of an economy that is owned by individuals and operated for their personal benefit. </li></ul><ul><li>Exchanges in the private sector contribute to the efficiency of the economy. </li></ul><ul><li>Individual choice and competition in the private sector improve efficiency. </li></ul><ul><li>Can you think of anything in the private sector? </li></ul>
  3. 3. Private Ownership-Benefit <ul><li>Private Gain! </li></ul><ul><li>Private goods=goods that are privately owned and used to benefit only their owners. </li></ul><ul><li>Ex. Selling a house </li></ul><ul><li>General motors? </li></ul><ul><li>Public sector=the part of an economy that is owned by the whole society and operated for its benefit. </li></ul>
  4. 4. Private Sector Exchanges <ul><li>Exchange=the giving of one thing in return for some other thing. Both parties benefit! </li></ul><ul><li>Efficiency and Individual Choice </li></ul><ul><ul><li>Efficiency- achieving the maximum benefit from a given amount and combination of resources. </li></ul></ul><ul><ul><li>Firms must be efficient in order to stay in business. </li></ul></ul><ul><ul><li>Competition! </li></ul></ul>
  5. 5. Competiton <ul><li>The rivalry between two or more parties to gain benefits from a third party. </li></ul><ul><li>Competition forces weaker, less efficient companies out of the industry </li></ul><ul><li>Works to the consumers advantage </li></ul><ul><li>Causes us to make choices </li></ul>
  6. 6. Private Sector Markets and Consumers <ul><li>Market=exchange activities between buyers and sellers of goods and services. </li></ul><ul><li>Provide information through </li></ul><ul><ul><li>Advertising </li></ul></ul><ul><ul><li>Public relations </li></ul></ul><ul><ul><li>Promotions </li></ul></ul><ul><ul><li>Demonstrations </li></ul></ul>
  7. 7. Markets <ul><li>Establish and provide price information </li></ul><ul><li>Establishes prices through competition </li></ul><ul><li>Provide many choices </li></ul><ul><li>Many choices=satisfied customers </li></ul>
  8. 8. Private sector markets and producers <ul><li>The success of producers depends on their ability to satisfy the wants and needs of consumers more efficiently than other do </li></ul><ul><li>Producers must find what consumers want or need </li></ul><ul><li>Entrepreneurs=individuals who take the risk of producing a product for a profit </li></ul><ul><li>They take risks! </li></ul><ul><li>Private enterprise=a system in which individuals take the risk of producing goods or services to make a profit </li></ul>

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