MGTA01H3 Chapter Notes - Chapter 3: Planned Economy, Economic System, Franklin D. Roosevelt

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

Document Summary

Economic system the means by which a society produces and distributes the goods and services that its people need. Economic systems: planned economies vs. market economies pg. All countries economies can be divided into two categories: planned economies countries where most of factors of production are controlled by state and determined by government plans. Based on assumption that nations most educated and fit workers will be working for state. Argu(cid:373)e(cid:374)ts for : businesses are not concerned with people who do(cid:374)"t ha(cid:448)e (cid:373)o(cid:374)ey a(cid:374)d o(cid:374) (cid:449)ho(cid:373) they (cid:272)a(cid:374)"t (cid:373)ake a profit. O(cid:374)ly the state is (cid:272)o(cid:374)(cid:272)er(cid:374)ed (cid:449)ith the (cid:449)ell(cid:271)ei(cid:374)g of the state: communism economic system where all factors of production are controlled. Planned economies- two types pg 43 by state: socialism economic system where the government owns the majority of the factors of production and directs most of the productive activity. Intervenes heavily through taxation, regulation, and management of important industries. Market economies 2 types pg 47 private individuals.