MGTA01H3 Lecture 3: MGTA01 lecture 3
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MGTA01H3 Full Course Notes
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Mgta01-lecture 3- chapter 3: owning and controlling the factors of production. Preferences as to which economic systems work the best. The variation of the economic systems throughout the countries. Building blocks of a business are the factors of production . 4 factors: natural resources (raw materials from the ground, harvested from nature, / etc. ), labour ( i. e. workers), capital (i. e. money or machines/ technologies that money buys), and an entrepreneur ( someone willing to take risks and combine the first 3 factors) Factor substitution: understanding the importance and strengths of the factors. How people make decisions about what they are going to make and how they will produce it. Conflict: how much should the government control vs. how much should be left to individuals. There is a spectrum between a government controlling to private individuals. Socialism: the government leads owns and controls most of the factors of production.
