The use of efficient technology is a contributing factor towards economic development. Government support also plays a significant role in promoting a conducive business environment that allows firms to operate a reduced cost by providing incentives trade (Gwartney, Robert & Seth, 2016). This allows them to earn a substantial amount of income because they produce a variety of products. The most developed countries enjoy favorable terms of trade since they employ low-cost and efficient technology to manufacture their products. In this case, competition creates value for the products manufactured by various firms in the market.ĭifferent nations have varying levels of economic prosperity because they utilize different methods of production. Competition encourages firms to use low-cost production methods to produce goods that meet the needs and wants of consumers in the market. Competition and trade are essential elements in the book that the society must understand.
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It is through innovation that companies will be able to compete efficiently in the market. On the other hand, competition enables companies to become innovative. Trade allows companies to produce valuable goods which are needed by the consumers in the market trade (Gwartney, Robert & Seth, 2016). Trade and competition play a major role in economic progress. This book is beneficial for individuals and the society as a whole since it gives the opportunity to apply common sense in various economic decisions so as to attain economic prosperity.
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Therefore, it is important for an individual to understand the contribution of the government and the role of personal finance in economic progress. Besides, it describes the role of the government in economic progress and how practical personal finance aids in economic success and prosperity of an individual. The book Common Sense Economics analyzes various key elements of economics and the factors responsible for economic progress.