systems Flashcards
1
Q
communism/command
A
who controls the resources: the government
how are resources allocated: Gov “planners” decide what to produce, how much and the price
role of government: Govt makes all decisions
2
Q
socialism
A
who owns/controls the resources: government private sector
How are resources allocated: Gov, allocates some resources ex. energy “market forces” allocate privately owned resources
Role of government: share decision making
3
Q
capitalism
A
who owns/controls the resources: private ownership of resources
how are resources allocated: “ market forces” allocate resources
role of government: limited Gov intervention “laissez-faire”
4
Q
characteristics of capitalism
A
- property rights-private property
- government protects property rights and a court system that protects them
- limited government-laissez-faire
- voluntary exchange of products/services
- win-win for producers, consumers, both feel like they gained something through their exchange.
