ADMS 1000 Chapter Notes - Chapter 6: Frictional Unemployment, Full Employment, Deflation

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Paulette Burgher

Document Summary

Individuals: money is a limited resource, opportunity cost is the cost of the best foregone alternative. Analyzing the economy: two approaches: microeconomics is the study of smaller components of the economy, such as individuals and businesses, macroeconomics is the study of larger economic issues involving the economy as a whole. Role of government is studied at this level. More complex: o(cid:374)e i(cid:373)porta(cid:374)t (cid:373)a(cid:272)roe(cid:272)o(cid:374)o(cid:373)i(cid:272) (cid:272)o(cid:374)sideratio(cid:374) is (cid:862)the t(cid:455)pe of e(cid:272)o(cid:374)o(cid:373)i(cid:272) s(cid:455)ste(cid:373) (cid:449)ithi(cid:374) (cid:449)hi(cid:272)h a (cid:271)usi(cid:374)ess operates(cid:863) Types of economic systems: economic system is the way that the 5 factors of production are managed. Communism: go(cid:448)er(cid:374)(cid:373)e(cid:374)t o(cid:449)(cid:374)s or (cid:272)o(cid:374)trols esse(cid:374)tiall(cid:455) all of the (cid:272)ou(cid:374)tr(cid:455)"s e(cid:272)o(cid:374)o(cid:373)i(cid:272) resour(cid:272)es, government took most of the profit, so individuals had little incentive to build a business. Socialism: go(cid:448)er(cid:374)(cid:373)e(cid:374)t has large o(cid:449)(cid:374)ership or (cid:272)o(cid:374)trol o(cid:448)er (cid:373)ajor i(cid:374)dustries esse(cid:374)tial to the (cid:272)ou(cid:374)tr(cid:455)"s economy state can influence business goals, types of goods, etc. Mixed economy: ca(cid:374)ada"s e(cid:272)o(cid:374)o(cid:373)(cid:455, both government (public) and businesses (private) influence the economy.