ECO365 Week 3 Prof Comments

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

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

View Full Document Right Arrow Icon
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. Finally, it is
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/02/2009 for the course BUS ECO 365 taught by Professor Unk during the Spring '09 term at University of Phoenix.

Page1 / 2

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

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online