The profit motive is the intent to achieve a monetary gain in a project, transaction, or material endeavor. Profit motive can also be construed as the underlying reason why a taxpayeror company participates in business activities of any kind. Simply put, the profit motive suggests that people tend to take actions that will … See more Profit motive is thought to be one of the main drivers behind economic activity. Economists have often tried to figure out why people do the things that they do. Some answers point to simple survival. In most situations, … See more In theory, the profit motive helps everyone from individuals to corporations decide what to do at a particular time. Looking at profit, or the potential for profit, simplifies many decisions. If a … See more The profit motive is used in a more modest way as a defining factor in tax decisions. According to the Internal Revenue Service (IRS), … See more In practice, the profit motive is one of many factors that influences how people and businesses act. People, in particular, make their decisions based on a number of social and personal … See more WebThe profit-and-loss system (i.e., the free enterprise system) of the United States is our expression of freedom. Private profit cannot be extinguished without extinguishing, also, personal freedom. Profit, in the last analysis, is simply an expression of liberty—that is, the freedom to work in one’s own way and to do it better than someone else.
The free-market system cannot exist without government ... - Brainly
WebAn accountant's definition of profit is a business's total revenue minus the amount of money spent and the cost of depreciation; to an economist, however, profit is the excess of the total revenue paid by buyers for the goods over the seller's total expense of … WebDec 3, 2024 · In a free market system, the main motivation of producers is profitability. What is the free market? It is an economic situation where private property and industry can occur without state intervention, with the achievement of profitability being the main motivator of the free market. cost benefit analysis of cloud computing
What’s the profit motive and how is it supposed to work?
WebEconomic freedom is most limited in a market economy. Competition is a key factor in all the economies. Central authority is strongest in a command economy. The profit motive drives all businesses in a traditional economy. Question 14 30 seconds Q. Which of the following best describes the primary role of an economic system? answer choices WebA market economy is an economic system in which individuals own most of the resources - land, labor, and capital - and control their use through voluntary decisions made in the marketplace. It is a system in which the government plays a small role. In this type of economy, two forces - self-interest and competition - play a very important role. WebA free market economy has two key advantages. First, it allows for individuals to innovate. Individuals have the freedom to create new ideas, new products, and new services to sell for profit. breakdown car service