MGMT 1 Lecture Notes - Lecture 2: Franklin D. Roosevelt, State Capitalism
Document Summary
Factors of production are owned by individuals or private enterprises. Businesses decide what, how where and how much to produce and set prices. State capitalism refers to govts embracing freer markets. Right to own a business and keep profits. Prices are used to send signals (eg about strength of demand) Competition leads to high quality of products and efficient use of resources. Can lead to extreme wealth but also to extreme inequalities. Can increase chance of unethical if not illegal behavior.
