InThe Lessons of History, the Durants wrote:

The experience of the past leaves little doubt that every economic system must sooner or later rely upon some form of the profit motive to stir individuals and groups to productivity.[3]

Hence, the U.S. form of capitalism should be embraced. Indeed, virtually all corporate retirement investment choices assume this notion as a given. A commitment to capitalism suggests a major commitment of resources to individuals and limits on the power and resources of government. One of the most disturbing economic trends is the ever increasing percentage of government expenditure in the U.S. Gross Domestic Product (GDP).InThe Lessons of History, the Durants wrote:

The experience of the past leaves little doubt that every economic system must sooner or later rely upon some form of the profit motive to stir individuals and groups to productivity.[3]

Hence, the U.S. form of capitalism should be embraced. Indeed, virtually all corporate retirement investment choices assume this notion as a given. A commitment to capitalism suggests a major commitment of resources to individuals and limits on the power and resources of government. One of the most disturbing economic trends is the ever increasing percentage of government expenditure in the U.S. Gross Domestic Product (GDP).

Question two.

1. In a free-market economy the allocation of resources is determined by:

2. A rational person does not act unless:

3. . Economics is a ----- science which deals with human wants and their satisfaction

4. ------ defined economics as a study of mankind in the ordinary business of life

5. The growth of an economy is indicated by an

6. -----------equals revenue minus all explicit costs.

7. The father of New Economics is

8. The ------------------ problem refers to the possibility that owners and their managers may have different objectives.

9. . Economic profit refers to ------------ minus all relevant costs , both explicit and implicit.

10. The interaction of individuals and firms in a market can be described as a ----------------- of money, goods and services and resources through product and factor markets.