{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

b10chap2 - Chapter 2 Understanding How Economics affects...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
10/4/2011 1 Chapter 2: Understanding How Economics affects Business affects ` http://www.youtube.com/watch?v=0C3XQ3B Td4o 1. The share of all productive assets that are owned and managed by the government 2. The degree to which government regulates economic activity, and 3. The degree to which fairness of economic outcomes is treated as a major public policy goal.
Background image of page 1

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

View Full Document Right Arrow Icon
10/4/2011 2 Socialism Mixed Economy Capitalism (Little Control ) Emphasizes efficiency and effort Communism (Highly Controlled ) Emphasizes fairness = equality of economic outcomes “The Big Tradeoff” Less inequality (of wealth and income, a.k.a. i t ) economic outcomes.) 1. Less effort 2. “Brain drain” 3. Fewer inventions and less innovation
Background image of page 2
10/4/2011 3 1. Much less effort 2. Poor “allocative efficiency” 3. Poor “productive efficiency” 4. Severe economic depression North Korea Today
Background image of page 3

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

View Full Document Right Arrow Icon
10/4/2011 4 True or False? Socialists believe that the primary economic function of the government is to promote rapid economic growth.
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}