MGTA05H3 Chapter Notes - Chapter 1: Market Economy, Planned Economy, Retail
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MGTA05H3 Full Course Notes
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An economic system is the production and exchange of goods and services as well as. Lecture two- the economic system allocation of resources in a society. Different type of economic system manages the factors of productions in different ways. Is some systems the ownership is private; in others the factors of productions are controlled by the government. The business generates value and to realize it they must enter into exchanges. The group of business and non-business organizations, the members that are involved in a exchange in a organized way creates an economic system. The two most basic forms of command economies are communism and socialism. Communism is a system in which the government owns and operates all sources of production. Karl marx was a german economist who proposed this system. Karl marx envisions this society where individuals would have unlimited contributes according to their abilities and receive economics benefits to their needs.
