Types Of Economies Flashcards
Capitalism
productions are privately owned.
Economics
Analyzes the production, destruction, and consumption of goods and services
What kind of economy would have capitalism?
A limited economy
What is an example of capitalism?
The U.S.
Socialism
Supports ownership of the means of production
In socialism, who leads factories and farms?
People instead of the wealthy.
In socialism, what class has power?
Working class
What is an example of socialism?
China
Communism
The community owns all property and the means of production and all citizens share the wealth.
What society does communism create?
A classless society
What is an example of communism?
Cuba
Ownership and control (capitalism)
- individuals control means of production
- market determines what goods will be sold at what price
Ownership and control (socialism)
-basic means of production owned by government
Ownership and control (communism)
- government owns production
- government determines what will be sold at what price
Competition (capitalism)
-competition keeps prices low and quality high