Textbook Notes (362,842)
Canada (158,078)
York University (12,350)
ADMS 1000 (298)
Chapter 2

ADMS 1000 Chapter 2.docx

2 Pages
Unlock Document

York University
Administrative Studies
ADMS 1000
Eytan Lasry

The Economic Context 1 Chapter 2 (Day2)  Economic systems around the world o An economic system allocates a nation’s resources among its citizens o Factors of Production  Labour  Sometimes called human resources  Labour is the mental and physical capabilities of people  A big company require a labour force with a wide variety of skills ranging from managers to geologists to truck drivers  Capital  Needed to start a business and to keep it operation and growing  Major sources of capital for businesses are personal investment by owners, the sale of stock to investors, profit from the sale of product and services, and funds borrowed from banks and other lending institutions  Entrepreneurs  People who accept the opportunities and risks involved in creating and operating businesses  Natural Resources  Include all physical resources such as land, water, mineral deposit and trees  Information resources  Include the specialized knowledge and expertise of people who work in businesses as well as information that is found in market forecasts and various other forms of economic data o Types of Economic System  Command Economies  The two most basic forms of command economies are communism and socialism  Communism is a system in which the government owns and operates all sources of production  Socialism is a system in which the government owns and operates only selected major industries  Small businesses such as clothing store and restaurants may be privately owned  Market Economies  Capitalism: Privately-controlled factors of production  Mixed Market Economies  Features characteristics of both command and market economies  Ex: Canada  Government in mixed market economies have intervened in the economic system in an attempt to stabilize it, but this has led to higher deficits and more control of business activity o Type of Competition  Perfect Competition  Undifferentiated products  Infinite buyers and sellers  Perfect information  No entry/exit barriers  No market power - firms are price-takers  e.g. commodities, financial assets  Monopolistic  Products are close but imperfect substitutes  Many firms  Some market power to set prices  e.g. restaurants, dry-cleaning  Oligopoly  Small number of firms The Economic Context
More Less

Related notes for ADMS 1000

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.