BUS 200 Lecture Notes - Lecture 4: Planned Economy, Product Liability, Competition Law
7 Mar 2018
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In terms of the degree to which they emphasize collectivism as opposed to individualism. In terms of the degree to which they are democratic or totalitarian. Terms: collectivism - stresses the primacy of collective goals over individual goals. There are three types of economic systems: the market economy, the command economy, and the mixed economy. A free market system is likely in countries where individual goals are given primacy over collective goals. State-owned enterprises and restricted markets are common in countries where collective goals are dominant. In a pure market economy the goods and services that a country produces, and the quantity in which they are produced is determined by supply and demand. In a pure command economy the goods and services that a country produces, the quantity in which they are produced, and the price at which they are sold are all planned by the government.
