COMM 101 Midterm: Commerce 101 Review
Document Summary
Definition: the resources used to create goods and services, includes 5 factors. Economics how choices made by governments and their agencies affect prices, the distribution of factors of production, employment, standard of living, etc. The factors of production are managed differently between a command economy (communism), a. Market economy (capitalism), a socialist economy, and all others in-between. The primary difference is how they manage the factors of production. A combination of policies, laws, and choices made by a nations governments. It establishes the systems that determine what goods and services are produced and how they are allocated. An economic system based on competition in the marketplace and private ownership of the factors of production (resources) Also known as the private enterprise system or capitalism. Competition is good for businesses and consumers. An economic system characterized by government ownership of virtually all resources and economic decision making by central-government planning. Also known as planned economy or central planning.
