business notes

business notes - Economic Systems 3 kinds and examples...

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Economic Systems 3 kinds and examples Market Privatization Demand v. Supply Laws of Demand v. Supply Demand and Supply Schedule Demand Curve v. Supply Curve Equilibrium Price Planned Economy: Govt controls 1. Communism-govt owns/controls factors of production Market Economy: Controlled by consumers/producers Market: allows buyers and sellers to exchange goods and services 1. Capitalism- encourages private ownership of factors of production and entrepreneurship Mixed Market- most countries have elements of planned and market economies 1. Socialism- Partially planned (mixed) because govt owns major industries (banks, transportation) while small businesses (restaurants, retail) privately owned Privatization- process of converting govt owned companies to privately owned Economics Demand- willingness and ability of buyers to purchase goods/services Supply- willingness and ability of producers to offer Law of Demand: Buyers will buy more if price drops, buy less if price increases Law of Supply: Producers will offer more if price rises, offer less if price drops Demand and Supply Schedule- assess relationships betw. different levels of demand and supply at different prices Demand Curve- shows how much product is bought at different
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This document was uploaded on 10/09/2008.

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business notes - Economic Systems 3 kinds and examples...

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