ACTG 2010 Lecture Notes - Lecture 6: Laissez-Faire, Price Gouging, Natural And Legal Rights
12 Jul 2016
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Capitalism: an economic system in which there is private ownership of the major portion of production and distribution. All manufacturing firms including military hardware for the government, banks, insurance companies, transportation companies, all businesses are privately owned. Exception of health, education, welfare, highways, military equipment in certain sectors. Free to determine what products will be produces, set own production goals, set prices in accordance to consumer demand. Socialism: an economic system in which there is public ownership of property and a planned economy. Productive equipment is not owned by individuals but by public bodies. Centralized planning for overall allocation of resources and distribution of income; crucial economic decisions made by people and not government. Soviet union decided number of automobiles produced model, style, color etc. Mixed economy: economic system in which both features of capitalism and socialism exist. U. s economy is closer to the capitalism system. Companies (read chapter 2 notes to understand policies)
