BUSI 1600U- Midterm Exam Guide - Comprehensive Notes for the exam ( 23 pages long!)
Document Summary
2/ self study - ch 2 - economics and banking. Economics: the study of individuals, businesses and government make decisions about how to allocate limited (scarce) resources to best satisfy people"s wants, needs and desires. Microeconomics: the study of how individual businesses, households and consumers make decisions to allocate their limited resources in the exchange of goods and services. Macroeconomics: the study of the behaviour of the overall economy. Types of economic systems: planned economic system -- the government plays a greater role in determining the goods and services provided and how they are produced and distributed. Karl marx, originator of communist principles in his book the communist manifesto, envisioned the workers themselves eventually taking over the government"s responsibilities to provide the services. These types of economy are failing due to shortages of goods and services. Government owns or controls many basic businesses and services, while individuals own and operate less crucial industries.
