Types of Economics

Capitalism

Description- an economic and political system in which a countries trade and industry are controlled by private owners for profit,

Who owns production- private citizens provide their own

Who makes the decisions- the people

Is there competition- Yes, sellers try to out do each other for profit and products

Example- United States

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Socialism

Description- an economic system where major industries are owned and controlled by the government.

Who owns production- Society uses the government to make decisions about the productions of goods and services

Who makes the decisions- The government

Is there competition- government eliminates competition by equally distributing wealth

Example- China

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Communism

Description- government planners decide every aspect of the countries citizens life.

Who owns production- the government

Who make the decisions- the government

Is there competition- no, everyone gets paid the same amount of money

Example- USSR

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