MGTA01H3 Chapter Notes - Chapter 3: Planned Economy, Canadian Business, Toothpaste

• School: UTSC
• Department: Management
• Course: MGTA01H3
• Professor: Chris Bovaird

Document Summary

Who decides what needs to be produced. Economic systems: planned economies versus market economies: we can divided all countries into one of two categories: Planned economies: countries in which most of the factors of production are controlled by the state. Only the state, with its ability to create and enforce the law, has the power and the authority necessary to feed, clothes, shelter, educate and employ the nation"s entire population. Businesses are primarily concerned with making a pro t. Therefore, businesses have no concern for those who aren"t customers or do not have the money to buy products. Only the state has a benevolent interest in the welfare of all members of society. Those who argue for market economics argue the following: State control works poorly in practice. people need an almost in nite variety of things (coffee, shoes, toothpaste, etc. )