MGTA01H3 Chapter Notes - Chapter 3: Income Tax, Progressive Tax, Unemployment Benefits
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MGTA01H3 Full Course Notes
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Economics: the study of how people produce things they need and want. Economic systems: the means by which a society produces and distributes goods and services that its people need. System, country determines: who owns factors, controls fa(cid:272)tors, de(cid:272)ides (cid:449)hat"s produ(cid:272)ed, ho(cid:449) goods a(cid:374)d ser(cid:448)i(cid:272)es are distri(cid:271)uted. Advocating for planned economy: only state has power and authority to feed/clothe/shelter its citizens, businesses are only concerned with making profit. Advocating for market economy: too many people needs for gov. to understand, gov. is too removed from pop. , competition = responsiveness, levels out power. Planned economies: an economic system where the gov. takes the lead role in owning and controlling the factors of production. In a planned economy, the decisions about what gets produced and how it gets produced are determined by the go(cid:448)er(cid:374)(cid:373)e(cid:374)t"s pla(cid:374) Market economies: a country with an economic system in which individuals make the decisions about what gets produced.
