ADM 3318 Chapter Notes - Chapter 2: Totalitarianism, Collectivism, Individualism
Document Summary
Political economy: the interdependent combination of a country"s political, economic, and legal systems. Political systems can be assessed by two dimensions: the degree to which they emphasize collectivism as opposed to individualism, the degree to which they are democratic or totalitarian. Market economy: all productive activities are privately owned, as opposed to being owned by the state. Production is determined by the interaction of supply and demand and signaled to producers through the price system. Command economy: an economic system in which government plans the allocation of resources, including determination of what goods and services should be produced and in what quantity. Mixed economy: an economic system which certain sectors are left to private ownership and free market mechanisms, while other sectors have significant government ownership and government planning. Rules that regulate behaviour and the process by which the laws of a country are enforced and through which redress of grievance is obtained.
