Students will be able to use this knowledge to explain situations in which they pay or receive interest, and explain how they would react to changes in interest rates if they were making or receiving interest payments. Income for most people is determined by the market value of the productive resources they sell. What workers earn depends, primarily, on the market value of what they produce and how productive they are. Students will be able to use this knowledge to predict future earnings based on their career plans for educations, training, and career options. Entrepreneurs are people who take the risks of organizing productive resources to make goods and services.
Profit is an important incentive that leads entrepreneurs to accept the risks of business failures.
Students will be able to use this knowledge to identify the risks, returns, and other characteristics of entrepreneurship that bear on its attractiveness as a career. Investment in factories, machinery, new technology and in the health, education, and training of people can raise future standards of living. Students will be able to use this knowledge to predict the consequences of investment decisions made by individuals, businesses, and governments. 16.There is an economic role for government in a market economy whenever the benefits of a government policy outweigh its costs. Governments often provide for national defense, address environmental concerns, define and protect property rights, and attempt to make markets more competitive.