Class Notes (837,435)
Canada (510,273)
Economics (1,296)
ECN 104 (447)
Alba A. (1)
Lecture

Chapter 2- ECN104.docx

2 Pages
80 Views
Unlock Document

Department
Economics
Course
ECN 104
Professor
Alba A.
Semester
Winter

Description
Chapter 2- The Market System and the Circular Flow Economic System- particular set of institutional arrangements and a coordinating mechanism to produce goods and services. 2 types.  determines what goods are produced, how, who gets them, how to accommodate change, and promote tech growth. 1. The Command System- economic system in which most property resources owned by government and a central government body makes economic decisions. ( communism). 2. The Market System- private ownership of resources and use of markets and prices to coordinate and direct economic activity.( capitalism) Characteristics of the Market System 1. Private Property- The right of private persons and firms to obtain, own, control, employ, dispose of, and bequeath land, capital, and other property. 2. Freedom of enterprise- freedom to obtain economic resources, to use these resources to produce products of firms choosing and sell products in market of choice. 3. Freedom of choice- freedom of owners to use property resources as they see fit, and of consumers to spend income in a manner they think is appropiate. 4. Self-interest 5. Competition 6. Market and prices 7. Tech and Capital goods 8. Specialization- using resources of an individual, region, or nation to produce one or a few goods or services rather than the entire range of goods and services. a. Human Specialization( division of labour)- dividing work required
More Less

Related notes for ECN 104

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit