MGTA05H3 Chapter Notes - Chapter 4: Planned Economy, Communism In Russia, Progressive Tax
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MGTA05H3 Full Course Notes
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Economic system: the means of how a society produces and distributes the goods and services that its people need. Economics- the study of how people produce things they need and want: what to produce, what to consume, how to produce it, how to share it. Through this system the following are determined: who owns the factors of productions (capitalists), who controls the factors of productions, who decides what needs to be produced, who decides how goods and services are distributed. Government in control 100% or individuals in control. Economies (countries in which most of the factors of (countries where private entrepreneurs control every aspect) production are controlled by the state) Planned economies- an economic system where the government takes the main role in deciding the factors of production. In a planned economy the government decides on the means of production and what is produced.
