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

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

Document Summary

Economics: the study of how people produce things they need and want. Economic system: the means by which a society produces and distributes the goods and services that its people need. through its choice of economic system, a country determines the following: Who decides what needs to be produced. Who decides how goods and services are distributed. Canada"s economic system allows businesses to exist alongside not-for- profits and governments. Countries in which most of the factors of production are controlled by the state. Only the state has the ability to create and enforce the law has the power and the authority necessary to feed, clothe, shelter , educate and employ the nation"s entire population. Businesses are primary concerned in making profit (doesn"t care if customers can afford it or need it) therefore only the state has the interest in the welfare of all members of society.