MGT 1004 Chapter Notes - Chapter 2: Economic System, Gross Domestic Product, Fiscal Policy
Document Summary
Economics: study of how society handles resources to produce goods and services for consumption among various groups and individuals. Macroeconomics: operation of a nation"s economy as a whole. Free market: decisions about what and how much to produce are made by the market. Market price (equilibrium): determined by supply and demand. Opportunities for poor people to work their way out of poverty. Socialism: economic system based on the premise that some businesses should be owned by the gov in order to more evenly distribute (poorer people benefit from socialism) Positives of socialism: social equality, free education, free healthcare, free childcare, longer vacations, shorter work weeks. Negatives of socialism: few incentives for businesspeople to take risks, brain drain, fewer inventions and innovations. Gross domestic product: total value of final goods and services produced in a country in a given year as long as a co is within a country"s border, their numbers go into the country"s gdp.
