Lesson 2.
 Producer analyzes what
consumers are spending money
on, and how much do they spend.
He uses resources to produce
goods the most wanted by
consumers. Producers will try to
minimize costs to increase profit.
 Consumer buys products he wants
the most and ignores the ones he
doesn’t want. Producers try to
determine trends and produce
goods wanted by consumers.
Consumers vote with their wallets.

 Modified Free Enterprise Economy
is one in which the government
plays a limited role as producer,
consumer, and regulator.
 As consumer
government
buys some goods
from product and
resource
markets.
(Especially labor
from factor
market)
 As producer government provides
goods, services, and natural resources;
takes in money as tax revenues.
 Profit is the result left after
subtracting costs from revenue
received after goods and services
were sold.