economics review with answers

Economics ReviewCapitalism/Socialism/Communism

Ownership of Property?

Communism - PUBLIC/GOV’T Capitalism - PRIVATE/INDIVIDUALSocialism - BOTH

Principle of Operation?

FREE ENTERPRISE/COMPETITON- Capitalism FAIR DISTRIBUTION OF WEALTH- Socialism CENTRAL/GOV’T CONTROL- Communism

Choice of Work?

OPEN/FREE CHOICE- Capitalism REGULATED- Socialism/Communism

Government Involvement? GOV’T OWNS BASIC INDUSTRIES/PROVIDES SOCIALSERVICES-

Socialism GOV’T OWNS ALL INDUSTRIES- Communism GOV’T INVOLVEMENT KEPT TO A MINIMUM- Capitalism

Amount of Competition?

COMPETITON IS LIMITED- Socialism COMPETTITON IS PROMOTED- Capitalism THERE IS NO COMPETTITON- Communism

Promoters of Economic System?

Karl Marx- Socialism/Communism Adam Smith- Capitalism

Capitalism Pro

Rewards individual success Individual success leads to common good

Con Competition leads to winners and losers Not all succeed

Socialism

Pro All share equally the benefits of production No winners and losers

Con No competition - efficiency goes down High taxes

Communism

Pro Full employment citizens get what they need

Con Gov’t decides rewards Few luxuries