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Unformatted text preview: 1-30 CHAPTER 4 The Market System and the Private Sector-The Private Sectoris made up of households, businesses and the international sector-The Public Sectorrefers to activity by the various levels of government Productive Activityoccurs in both sectors. A basic problem is determining which sector can best produce a given good or service.-In the Market Systemof the private sector, the consumer is supreme -Consumer Sovereignty consumers determine what is produces through their purchases of goods and services-In contrast, in Centrally Planned Economiesa 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 functionHousehold:A group of people living in the same unit of housing (one or more people). The householder is the person in whose name the housing is owned or rented....
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This note was uploaded on 04/07/2008 for the course ECON 111 taught by Professor H during the Spring '07 term at UConn.
- Spring '07