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
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
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