MGMT 1 Lecture Notes - Lecture 2: Sneakers, State Capitalism, Equilibrium Point
Document Summary
Economics is how a society should use resources to produce and distribute goods and services. Adam smith believes in freedom and right to own private property and pursue self interests. Government isn"t involved at all in production. Now we have gov involved, with labor regulations and fda, etc. State capitalism are governments embracing freer markets, but there is still some state control. Right to own a business and keep profits. Market price is at equilibrium point is where demand and supply cross and prices stabilize. Perfect competition : many sellers, products are almost identical. Monopolistic : large number of sellers trying to differentiate their product. Oligopoly : few sellers trying to dominate market. Communism is for the government to own means and factors of government. Government makes all decisions of how things are produced. Socialism is a combination of gov-control and private business. Economic indicators give info about various aspects of an economy.
