BUS 100 Study Guide - Midterm Guide: Gross Domestic Product, Monopolistic Competition, Price Controls
19 Nov 2012
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Capital, labour, entrepreneurs, information resources, natural resources. All most important/most important is least in supply: types of economic systems. Communism gov t owns factors of production, and makes all decisions, government owns all industries. Socialism gov t owns/operates critical industries, individuals own non-critical businesses. Market distribution of resources based on supply/demand, ownership open to those who want it, freedom of choice. Mixed (canada), combination of freedom/government intervention: elements of private enterprise. Private property right to own, buy, use, sell and item. Freedom of choice the right to choose what to buy/sell, including one s labour. Profits anticipated profits affect what is produced. Competition for resources and customers motivates efficiency: competition. Pure competition lots of sellers, same product, lots of buyers, no individual price control. Monopolistic competition range of possible sellers, possibly unique but similar, limited price control. Oligopoly few sellers, high barriers to entry, similar products, market price .
