Directions: Summarize the main ideas of the lesson by answering the questions below. Today, some politicians and economists are calling for a significantly reduced role of government in the economy.
They envision private businesses taking over some or most of the services provided by the government to its
citizens. These individuals believe that the profit motive will make provision of these services by private, for-profit
businesses far more efficient and thus less costly. What do you think? Which, if any, government services do you
think would be provided more cheaply and efficiently by a for-profit company? Explain your answer using
examples.

Abc computer company has a $20 million factory in silicon valley in which in builds computer components. during the current year, abc's costs are labor (wages) of $1.01.0 million; interest on debt of $0.20.2 million; and taxes of $0.20.2 million. abc sells all its output to xyz supercomputer for $2.62.6 million. using abc's components, xyz builds four supercomputers at a cost of $0.8500.850 million each, which comes from $0.6500.650 million worth of components, $0.10.1 million in labor costs, and $0.10.1 million in taxes per computer. xyz has a $30 million factory. xyz sells three of the supercomputers to other businesses for $1.81.8 million each. at year's end, it had not sold the fourth. the unsold computer is carried on xyz's books as a $0.8500.850 million increase in inventory.

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