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Unformatted text preview: Private Enterprise
→ Also known as capitalism
Also System that rewards companies for their ability to
recognize and meet the needs of consumers.
– Pure capitalism has very minimal laws
Managed or Democratic Capitalism is driven by competition, but the
government plays a significant role in making laws to protect
different Competition: Battle for customer acceptance
→ Industries with high product demand tend to have higher
→ Competition helps keep prices low but can result in lower
→ Adam Smith’s Invisible Hand
Invisible What other economic systems are
– 100% property owned by the collective government. Som
– Government owned and private owned industries
(50%/50% Democratic Som
– Heavy government involvement in the economy (30%
to 50% Government ownership).
to Key Facts
Key How many people are t...
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This document was uploaded on 11/01/2011 for the course BUS 101 at Miami University.
- Fall '08