Man science uses a scientific approach to solver many problems.
Used in variety of orgs to sove different types of problems.
Encompasses a logicical mathematical approach to problem solving
1.1 Man science process • Observation - Identification of a problem that exists in the system or organization.
• Definition of the Problem - problem must be clearly and consistently defined showing its boundaries and interaction with the objectives of the organization.
• Model Construction - Development of the functional mathematical relationships that describe the decision variables, objective function and constraints of the problem.
• Model Solution - Models solved using management science techniques.
• Model Implementation - Actual use of the model or its solution.
1.2 Factors of production
Natural resources i.e. crude oil
Capital i.e. investors
Labour i.e. technical and academic
Entrepeneurship i.e. takes capital and link labour and natural resouces combined with risk to provide goods and services.
Knowledge i.e. to determine wants and needs quickly and to respond to them with products and services.
1.3 3 Most NB Economic systems
= Capatalism, Socialism and Communism
Free market system
Built on principles of private ownership
Is based on the right to make a profit, right to compete and the right to own property.
System is market driven and the solutions to a country's economic problems are left to the market forces to solve.
Centrally controlled system
Based on the ideas of Karl Marx nd Friedrich Engels.
All assets belong to the people
All people must work in order to receive goods and services that are due.
All assets and liabilities belong to the state.
State determines the price of production and services.
State controls all means of production and therefor no private ownership or profits for the individual.
State appoints the