MGTA01H3 Lecture Notes - Lecture 3: Planned Economy, Progressive Tax, Canada Labour Code

• School: UTSC
• Department: Management
• Course: MGTA01H3
• Professor: Chris Bovaird

Document Summary

Economics is the study of how people produce the things that they need and want. Economic system is the means by which a society produces and distributes the goods and services for its people. The government decides who owns and controls the business, who decides what needs to be produced and how goods and services are distributed. Planned economies: countries in which most of the factors of production are controlled by the state, which refers to an organized community of people occupying a territory or living under one government. Only the state has benevolent interest in the welfare and everyone in a society. Market economies: countries in which most of the factors of production are controlled by individuals and where entrepreneurship and business ownership are encouraged. People that advocate for a market economic system: planned economies would work very poorly since people need an infinite number of products.