MGTA05H3 Chapter Notes - Chapter A-B: Equilibrium Point, Air Canada, Vivarium Inc.
12
MGTA05H3 Full Course Notes
Verified Note
12 documents
Document Summary
Command economy centralized government a. control all or most factors of production b. make all or most production and allocation decisions. Market economy individuals (producers and consumers) control production and allocation decisions through supply and demand. Command economies: two basic forms sources of production (now) communism alongside a market-based economy, communism a system government owns and operates all. German economist karl marx his predictions were faulty: socialism government owns and operates only selected. Less extensive command economic system major industries (reasons declining in popularity: management positions are frequently lled based on political considerations rather than ability, extensive public welfare systems have resulted in very high taxes. Market economies: market a mechanism for exchange between the buyers and sellers of a particular good or service. B2b transactions far exceed b2c transactions in dollar value. B2c and b2b exchanges take place without much government b. b2b business-to-business involvement.
