BUS 201 Chapter Notes - Chapter 1-5: Canadian Wheat Board, Economic Equilibrium, Planned Economy
Document Summary
: organization that seeks to earn profits by providing goods and services. Nonprofit organizations: business that does not seek profit. Economic system: the way in which a nation allocates its resources among its citizens. Command economy: an economic system in which government controls all or most factors of production and makes all or most production decisions. Communism: a type of command economy in which the government owns and operates all industries. Socialism: a kind of command economy in which the government owns and operates the main industries while individuals own and operate less crucial industries. Market economy: an economic system in which individuals control all or most factors of production and make all or most production decisions. Input market: firms buy resources that they need in the production of goods and services. Output market: firms supply goods and services in response to demand on the part of consumers.