MGTA05H3 Lecture 4: Economic systems
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Document Summary
The means by which a society produces and distributes the goods and services that its people need. Has concerns for all of its citizens. Only the state has the power to resources (to benefit all of society) Planners make rational decisions in the best interest of society. Only the state will ensure a fair distribution to citizens. Individual businesses have better and more current information about what its customers actually need and want. Individuals are closer to its customers than planners. Busi(cid:374)esses (cid:272)a(cid:374) (cid:396)espo(cid:374)d (cid:395)ui(cid:272)ke(cid:396) to (cid:271)ette(cid:396) satisfy (cid:272)usto(cid:373)e(cid:396)s" (cid:374)eeds a(cid:374)d wa(cid:374)ts. Government owns majority of factors of production. Businesses and governments and not for profit organizations co-exists. Businesses provide majority of goods and services, governments provides some, not for profit organizations provides some. Tax: fees imposed on goods, this is how governments generate revenue. Laws and regulations: they provide some policies that all organizations must follow otherwise breaking the law.
