MGTA01H3 Lecture Notes - Lecture 3: Economic System, Market System
14
MGTA01H3 Full Course Notes
Verified Note
14 documents
Document Summary
Owning and controlling the factors of production (chapter 3) Economics: the study of how people produce the things they need and want. Economic system: a way where one society over the other makes decision. Government in control or individuals in control. " state ": means a country, its people and its territory. A "state" is lasting, canada is 150 years old. Only the state: has concern for all citizens. Only the state has the power and resources to direct food, clothing, shelter, jobs to benefit all society. Planners will make rational decisions in the best interests of the nation. Only the state will ensure fair distribution of goods and services to all. Communism: government owns/controls all the factors of production makes 100% of. Socialism: government owns/controls majority of the factors of production, including. Difference between the two: one is 100% (communism) the other is 50% (socialism) principal industries, makes most of economic decisions.
