(Optional) Explain the concept of profit.
Explanation should include
- definitions of profit, gross profit, net profit, income, and expenses
- the concept that profit is the money left over after all expenses have been paid
- examples of how profit drives business (e.g., by reinvesting in business).
Process/Skill Questions:
- What are examples of expenses that affect a business owner’s profits?
- What effect does profit have on business survival?
- How does the motive for greater profits affect the quantity of supply?
- How can the environment affect profits?