1. Free enterprise
   1. what?
      1. capitalism
      2. all resources privatly owned
      3. how it works
         1. manufacturers react to consumer's needs and wants
         2. minimum amount of factors of production
         3. those who supply factors of production get the benefit
   2. Pro
      1. competitive
      2. effient use of resources
      3. choice
   3. con
      1. uneven distribution of wealth
      2. exploitation of labour
      3. social costs
         1. destruction of landscape
         2. air polution
2. Centrally planned system
   1. What?
      1. public ownership
         1. resources
         2. production
      2. how it works
         1. government controls
            1. economic activity
         2. Central planners
            1. allocate resources for goods
            2. fix quantities
            3. set price
   2. pros
      1. economic dev can be achieved faster
      2. government can begin heavy industry
   3. cons
      1. planners cannot predict consumers' needs and wants
         1. shortages
      2. Soviet Union
      3. workers' motivation reduced
         1. lower output per person
3. Mixed economies
   1. Government gets involved
      1. Indicative planning
         1. negotiates with
            1. trade unions
            2. industry reps
            3. employer reps
            4. unemployed reps
         2. some results
            1. nationsl wage agreements
            2. plans for economic dev
            3. eg
            4. Towards 2016
            5. national dev plan
            6. transport 21
      2. Fiscal policy
         1. taxation
         2. government spending
      3. monetary policy
         1. interest rates
         2. borrowing
         3. controlled
            1. european central bank
         4. implemented
            1. central bank