MGTA01H3 Lecture Notes - Lecture 3: Liquor Control Board Of Ontario, Planned Economy

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

Document Summary

Economics: the study of how people produce the things they need and want. Different countries answer these questions differently: government in control, or individuals in control. Economics systems: spectrum: planned economies on one end (communism), market economies on the other end (liberalism). State: a country, its people, and its territory. Canada is a state: canada is 148 years old. Only the state, or the government on the behalf of the state, has concern for all citizens. Theory behind planned economies: only the state has the power, resources to direct food, clothing, shelter, jobs to benefit all society: government will pick the smartest people to run the state. Communism: government controls all factors production, makes 100% of economic decisions: examples: very few after 1989, probably north korea. Socialism: government controls most of the factors of production, including principal industries, makes most of economic decisions: examples: cuba, but that"s changing.