MGTA01H3 Chapter Notes - Chapter 3: Planned Economy, Economic System, Market Economy

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

Document Summary

Week 3 - september 21 st , 2016. Chapter 3: economic systems: who owns and controls the factors of production. Economics: the study of how people produce the things they need and want. In a planned economy, the decisions about what gets produced and how it gets produced are determined by a government plan. Communism: an economic system where all of the factors of production are controlled by the state, and where there is no private property. Pure capitalism: an economic system in which all of the factors of production are owned by private individuals. All economic activity is privately run, citizens pay no taxes, and the government imposes no regulations on businesses. Private property and business activity cannot exist without rules and regulations: mixed market economy: a country where ownership and control of most of the factors of production is in the hands of private individuals.