Economics is the study of the choices consumers‚ business managers‚ and government officials make to attain their goals‚ given their scarce resources (Hubbard and O’Brien 2013). The decisions people make‚ and their interactions with others make up the economy. For people to attain his or her goals‚ they must make choices‚ and some time the resources to fulfill these goals are limited. Individual decision making reflects four principles: People make tradeoffs; because some things are scarce and not
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collectively determine the quantity of goods and services demanded and supplied at different prices. Answer: FALSE Explanation: The study of a country’s larger economic issues‚ such as how firms compete‚ the effect of government policies‚ and how an economy maintains and allocates its scarce resources‚ is termed macroeconomics. Diff: 1 AACSB: Analytical thinking Chapter LO: 1 Course LO: Compare and contrast different economic systems Classification: Concept 3) Capital includes land and minerals
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was the founder of the Soviet Union‚ a command economy that collapsed in 1991. This quote summarizes the type of control that he believed was required to create a utopian country. In a command economy‚ the government makes all decisions on jobs‚ land‚ and production‚ which leads to many social and political ramifications. This fact‚ along with a multitude of other factors‚ led to the Soviet Union’s collapse. In general‚ there is scarcely a command economy in history that has had success‚ this due to
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to achieve a more equitable distribution of both income and opportunity. ❖ The Industrial Revolution ➢ The Industrial Revolution were the great social changes that swept western nations as they moved from and agricultural to an industrial economy. ▪ Socialism was developed out of the Industrial Revolution. ▪ Cities expanded rapidly during this time and large factories replaced smaller home-based industry. ➢ Karl Marx‚ “the father of modern day socialism.” ▪ The most
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1.0 CONTENTS 1.0 CONTENTS 1 2.0 Tasks 2 Task 1-a 2 Task 2-a 10 Task 3-a 14 Task 4-a 19 Task 5-a 23 3.0 References 33 4.0 Coursework 34 2.0 Tasks Task 1-a What is globalization? What are its benefits? How does globalization help in international business? Give some instances. Globalization is the process of international integration arising from the interchange of world views‚ products‚ ideas‚ and other aspects of culture. Put in simple terms‚ globalization refers to processes that advance world-wide
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mixed economic system‚ free market system and the planned/command system. This paper aims to explain what a planned economic system is‚ the characteristics of the system and how resources are allocated within the system. A planned economy is an economic system in which factors of production are owned and managed by the government. Therefore‚ the government decides what to produce‚ how much to produce and for whom to produce. Although‚ a planned economy may be based on either centralized or decentralized
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Korea are similar but yet different in many ways‚ such as in economies. North Korea’s economy seems to need support from other countries to survive. South Korea’s seem too able to rebuild their economy even stronger than it was before from the Korean War. North Korea is under a strict communist dictatorship. N. Korea’s leader is Kim Jong II. He came to power in 1994 after his father died. North Korea has a large military and command economy. The average Korean person lives in poverty. The impoverished
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freedom and how the Philippines achieved its freedom through peaceful means. One of the privileges of this acquired freedom is that we are able to have an economic system which is well known for its competition and consumer independence; the market economy. The government has absolutely no authority to interfere with the business activities of people. They also cannot control the choices of the consumers nor could they decide what the producers would manufacture; therefore‚ they also cannot predict
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1. Explain the advantages of Socialist Economy? In socialist economic system means of production are owned and managed by the State. Ownership of means of production is not allowed. In socialism economic activities are carried on mainly for social gains and personal interest is of less significance. In this economic system the anti social activities like smuggling and hoarding find no place. Economic activities are planned with the motive of social benefit by a central planning authority. The
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nation. Therefore‚ the economy system in Soviet Union was highly controlled by government and it was planned for the next five years according to Stalin’s Five-year Plan. Unlike communism‚ Hitler’s Nazi Germany had a capitalism economy system‚ also know as free economy. Under this system‚ small business and private business are allowed to exist in the nation. Hitler also solved many poverty‚ inflation‚ and unemployment issues caused by the reparation through capitalist economy.
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