Economic Theories

Economics:

study of human efforts to satisfy seemingly unlimited wants through the use of limited resources.

Socialism-

economic system in which the government owns the basic means of production, distributes products & wages, and provides social services such as healthcare & welfare. Decisions for the economic system is made by majority vote by society through the government. Republic of India is an example of socialism.

Capitalism-

economic system providing free choices and individual incentive for workers, investors, consumers, and business enterprise. Capitalism has a profit and competition motive. It is also a free market economy. The United States is an example of capitalism.

Communism-

Economic system in which the central government directs all major economic decisions. Communism is a command economy, which is where the government controls all the means of production. China, Cuba, and Laos are examples of communism.