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Definition
-
Economy system
- Private people
- Private companies
- Business
- Production
- Profit
- Popular system
- Free market economy
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Features
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Private household (demand side)
- Offer job
- Need goods
-
Companies (supply side)
- Goods
- Services
-
Market
- Exchange goods
- Services
- Jobs
-
Prices
- Supply
- Demand
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Competition
- - cheapest price
- + pay worker
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How gov. regulate economy
-
Through competition
- Low price
- No monopoly
- No abusive taking over
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Respect
- Moral
- Environment
- Stabilize business cycle
- Help poorest
- Social market economy
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History
- Became important 15-16th
- International market
-
Industrial revolution
- Adam Smith
-
Trade union
- Work too much
- Earn too less
- Need to protect workers
-
19th
- Socialism
- Karl Marx
- Communism
-
1930 - great depression
- Lost trust in capitalism
- Gov. need fight depression
-
Keynes theory
- Today system
- Public company
- Private company
- Gov. control