Types Of Economic Systems

Question 1

Capitalism

Answer 1

Adam Smith-laissez faire, when indv are allowed to peruse best interests
Individuals-own and operate majority of businesses and goods and services and have a right to own and sell private property
Market Economy-businesses and individuals decide what to produce and buy. Market determines the quantity sold and prices
Mixed Economy-US economy is a modified capitalist or free enterprise system with some gov participation

Question 2

Socialism

Answer 2

Professional aims-equitable distribution of income, elimination of poverty, distribution of social services based on need, eliminate economic waste

Question 3

Socialism

Answer 3

Professional aims-equitable distribution of income, elimination of poverty, distribution of social services based on need, eliminate economic waste
Gov-owns and controls key industries. Private ownership of small companies
Visible socialism-is present in many demo gov. Ex Sweden, India, finland

Question 4

Communism

Answer 4

Karl Marx-classless society, individuals contribute based on their capabilities and receive benefits based on their needs
Gov-owns almost all economic resources. Practice a strictly controlled type of socialism
Command Econ-emphasis is placed on production of goods to at the gov needs rather than on products consumers might want
Communism-dwindled with breakup of Soviet Union and economic reforms in china. North Korea and Cuba are best remaining examples