14. Your business profits have increased. Instead of putting that money into your personal bank account, you decide to purchase new equipment that uses a new technology. This is an example of investing in capital goods. Explain why an entrepreneur would do this. 15. Your business profits have increased. Instead of putting that money into your personal bank account, you decide to purchase new equipment that uses a new technology. This is an example of investing in capital goods. Analyze how this decision would affect the company's PPC.

Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter10: Financing And Producing Goods
Section: Chapter Questions
Problem 10AA
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14. Your business profits have increased. Instead of putting that money into your personal bank account, you decide to
purchase new equipment that uses a new technology. This is an example of investing in capital goods. Explain why an
entrepreneur would do this.
15. Your business profits have increased. Instead of putting that money into your personal bank account, you decide to
purchase new equipment that uses a new technology. This is an example of investing in capital goods. Analyze how this
decision would affect the company's PPC.
16. Explain ways in which your shop & your customers participate in voluntary exchange.
17. You depend on your customers for business. Your customers depend on you to repair their cars. Therefore, you &
(meaning that you need each other).
your customers have: Economic
18. Looking Ahead: As owner of your repair shop, you decide who to serve, what kinds of goods and services you
produce, who you hire - essentially you make all the decisions about how to run your business. In which type of
economy is your "sole proprietorship" business? (circle one)
Traditional
Command
Mixed-Market
Partnership
Transcribed Image Text:14. Your business profits have increased. Instead of putting that money into your personal bank account, you decide to purchase new equipment that uses a new technology. This is an example of investing in capital goods. Explain why an entrepreneur would do this. 15. Your business profits have increased. Instead of putting that money into your personal bank account, you decide to purchase new equipment that uses a new technology. This is an example of investing in capital goods. Analyze how this decision would affect the company's PPC. 16. Explain ways in which your shop & your customers participate in voluntary exchange. 17. You depend on your customers for business. Your customers depend on you to repair their cars. Therefore, you & (meaning that you need each other). your customers have: Economic 18. Looking Ahead: As owner of your repair shop, you decide who to serve, what kinds of goods and services you produce, who you hire - essentially you make all the decisions about how to run your business. In which type of economy is your "sole proprietorship" business? (circle one) Traditional Command Mixed-Market Partnership
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