ECO365 Week 3 Prof Comments

ECO365 Week 3 Prof Comments - ECO365 Week 3 Professor...

Info icon This preview shows pages 1–2. Sign up to view the full content.

ECO365 Week 3 Professor Comments This additional lecture will cover the most important concepts to take away from week 3. These concepts are: capitalism and socialism, profit maximization, perfect competition, monopoly, and oligopoly. First capitalism and socialism. Capitalism is an economic system based on market forces and the means of production (land/capital) are owned by individuals. Thus, the market decides how, what, and for whom to produce. Socialism is an economic system based on government ownership of the means of production. Thus, government (via central planning) decides how, what, and for whom to produce. There is little if any reliance on the free market. Socialism is also referred to as a command system. In the real world, all economies have mixed economic systems which are neither complete capitalist nor socialist. Thus, economists analyze the extent an economy is more market or command based. For example, the US economy heavily favors the market while Cuba relies on a socialist model. Socialism as a widely accepted economic system collapsed with the fall of the Soviet Union, although many economies still have a general belief in heavy government involvement in economic activity.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern