MGTA01H3 Study Guide - Planned Economy, Economic System, Economic Equilibrium
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MGTA01H3 Full Course Notes
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Factors of production- labour, natural resources, capital ( the money), the negative then it"s a loss . Profits and loss- revenues- cost= result that is positive is profit, if result is. Command or planned economy government owns/controls all factors of production so the machinery, the land, the technology. Usually in communist environment eg. soviet union, north korea, so much less personal ownership of the factors of production socialist economies principal industries, makes most of the economic decisions government owns/controls majority of the factors of production, including eg. cuba. Aka costs expenses- the money the business spends producing its goods and services sales revenues money a business earns selling its products and services. Economic system-- the way in which a nation allocates it"s resources among its citizens, economic systems differ in terms of who owns and controls these resources, known as the factors of production .
