COMMERCE 1E03 Chapter Notes - Chapter 2: Mixed Economy, Oligopoly, Macroeconomics
23 Feb 2015
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Document Summary
Two major branches to economics: macroeconomics and microeconomics. Economists define economics as the allocation of scarce resources, they believe that resources are scare and that they need to be carefully divided among people, usually by the government. Businesses can contribute to an economic system by inventing products that greatly increase available resources, such as discovering new energy resources. The invisible hand helps the economy grow and prosper through the production of needed goods, services and ideas. The invisible hand is otherwise known as the effect from people trying to improve their own situation in life. In many countries a business person must bribe officials to get permission to own land, build on it, and conduct normal business operations. : all or most of the factors of production and distribution such as land, factories, railroads and stores, are owned by individuals.
