week 1 B&c - Bus&societyWeek1 1) What is meant...

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1) What is meant by managerial capitalism and why is this type of capitalism important to the U.S. economy? Capitalism: is an economy in which private individuals and corporations own the means of production and motivated by the desire for profit, compete in free markets under condition of limited restraint by government. While managerial capitalism is a market economy in which the dominant are large firms run by salaried managers, not smaller firms run by owners entrepreneurs. The Capitalism is important nowadays even they charge the capitalism by its responsibility in the world economy crisis 2009. Why does capitalism important? In my point of view, capitalism provides the freedom for transform capitals and investment, especially in a society where diversity play a big part in it. As the pure idea of capitalism introduced by Smith, it coordinated the activities of strangers who, to pursue their selfish advantage, were forced to fulfill the needs of others. In Smith’s words, each trader was “led by an invisible hand to promote an end which was no part of his intention,” the collective good of society
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2) What  are the various assumptions underlying the  market capitalism model? The assumptions are: One is that government interference in economic life is slight. This is called laissez-faire, a term first used by the French to mean that government should “let us alone”. Another is that individuals can own private property
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This note was uploaded on 02/26/2011 for the course BUSINESS Bus061 taught by Professor Hidi during the Spring '11 term at West Valley.

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week 1 B&c - Bus&societyWeek1 1) What is meant...

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