(Class 1) Intro
People will only exchange goods when you are made better off.
● Exchange value determined by S and D.
● Competition to be part of exchange results in:
○ Pressure for lower prices
○ Pressure for newer and better products
○ Pressure for more efficient ways to do things
○ Pressure to use resources to highest productive use
Business – Any activity that seeks to provide goods and services to others while operating at a
profit.
Goods – Tangible products such as computers, food, clothing, cars, and appliances.
Services – Intangible products (non-physical), such as education, healthcare, and insurance.
Revenue – Total money taken in by selling goods and services.
Expense – Total money spent to be able to offer goods and services in markets.
Profit – The money a business earns above what it spends on expenses.
● Revenues – Expenses. A change (increase) in wealth.
○ ^ A measure of how much better off a company is.
