MGTA05H3 Study Guide - Final Guide: Air Canada, Natural Monopoly, Planned Economy
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MGTA05H3 Full Course Notes
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Communism is a system in which the government owns and operates all sources of production. In the last 20 years, most countries have abandoned communism in favour of a more market based economy. (even countries that claim to be communist now contain elements of a market based economy ! ) Marx expected a society in which individuals would ultimately contribute according to their needs and he expected government ownership of production to be temporary. In a less extensive command economic system called socialism, the government owns and operates only selected major industries. Smaller businesses such as clothing stores and restaurants may be privately owned. Most workers in a socialist country work for the: market economies government. Many government operated enterprises are inefficient, since management positions are frequently filled based on political considerations rather than ability. Extensive public welfare systems have also resulted in very high taxes. Because of these factors, socialism is generally declining in popularity.
