MGTA01H3 Chapter Notes - Chapter 1: Monopolistic Competition, Perfect Competition, Socialist Economics
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MGTA01H3 Full Course Notes
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Economic systems: command or planned economies governments own/control factors of production and make most/all of the decisions. Communist economies governments owns/controls all factors of production and makes all economic decisions ex. Socialist economy government owns/controls majority of the factors of production and makes most economic decisions ex. Cuba (over 50%: market economies individuals own/control factors of production and make most/all of the decisions. Capitalist economies individuals owns/controls all factors of production and individuals make 100% of decisions (no countries on that have this) Majority of factors and make most economic decisions ex. Market a bunch of activities (not a physical place) eg. housing market, labour market. Market when buyers and sellers get together. The law of supply producers will offer more of a product as its price increases and less as it drops. The law of demand - consumers will purchase more of a product as its price drops and less as it rises.