BMGT 110 Chapter Notes - Chapter 2: Planned Economy, Industrial Organization, Fiscal Policy

• School: University of Maryland
• Department: Business and Management
• Course: BMGT 110
• Professor: Hugh Turner

Document Summary

Economics are based on the allocation of resources through two main inputs. Capital- money or assets a business can use money for that can benefit the efficiency or the productivity of a company labor - not only humans working for hourly pay. Macroeconomics- big picture -- economics for an entire state or country (i. e: gpd and gnp) Country level of economy -- how resources are allocated to produce the goods and services that are needed in a country. Planned economy seeing the needs of the company and allocated resources accordingly. Freemarket capital and labor are free to move to the industry where the products are in the most demand. Industries that are failing can move to more successful industries to do better. Communist countries (modern day china) the resources should go to the people doing the work. Microeconomics- individual business -- supply, demand, and cost structure.