{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 4.1 note - Chapter 4.1 The Market System 1 Private...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1 1 Chapter 4.1 The Market System 2 Private vs. Public Sectors The private sector is made up of households, businesses, and the international sector. The public sector refers to activity by the various levels of government. Productive activity occurs in both sectors. A basic problem is determining which sector can best produce a given good or service. 3 The Market System In the market system of the private sector, the consumer is supreme. In contrast, in centrally planned economies, a government planning group decides what will and will not be produced. – In a centrally planned economy, there is a limited private sector and the market does not fully function.
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