BUSN 201 Lecture Notes - Lecture 1: Gross Domestic Product, Monopolistic Competition, Planned Economy
Document Summary
Business: is the organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society"s needs. three general types of businesses: service businesses, manufacturers, and marketing intermediaries. Economics: the study of how wealth is created and distributed. Capitalism: (on which our economic system is based) is an economic system in which individuals own and operate the majority of businesses that provide goods and services. Capitalism stems from the theories of adam smith. command economy: government, rather than individuals, owns many of the factors of production and provides the answers to the three other economic questions. Socialist and communist economies are at least in theory command economies. Ways to evaluate the performance of an economic system: is to assess changes in productivity, which is the average level of output per worker per hour.
