MSCI 3400 Lecture Notes - Canadian Business, Liquor Control Board Of Ontario, Planned Economy
3 Feb 2013
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[to set the scene and provide some basic definition and define key features] The number of factors of production is a theory. In general there are about 4: labour, natural resources, capital, and entrepreneurs. Different countries will have different ways to answer these questions. Things such as natural resources available, production efficiency and population will affect the answer. Countries with more people will be more involved in labour intensive productions. Command/planned economy government control/own factors of production and make all the decisions. There are very few of total command economies such as north korea. Socialist economies government owns/controls the majority of the factors of production and makes most of economic decisions. Market/capitalist economies individuals own/control factors of production and make all/most of the decisions. Governments would at least have some control realistically speaking. Mixed market economies individuals own controls majority of factors and make most of economic decisions. Governments regulate and tax and run some businesses.
