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Capitalism
Capitalism
Capitalism is an economic system where the factors of production are privately owned money is invested so that the businesses make a profit.
Socialism
Socialism
Socialism is an economic system where the government has control of the industries to ensure that the wealth is being distributed equally.
What is Laissez-faire economics?
Laissez-faire economics means "let do", but it expresses the idea that the government should not intervene businesses because businesses should have their own thoughts, ideas, and freedom.
What is communist economic theory?
The communist economic theory is the idea that the factories should be owned by the community and not one single person. It gives off equality and no classes.
Karl Marx
Karl Marx
Marx strongly believed that capitalism was not fair because workers did all the hard work and owners took most of the money, workers were not paid enough and were very poor, while the owners were rich. He thought that the solution would be for workers to join together as one and unite, and he wanted a society where the wealth was equal among everybody. Marx thought that people would work hard without money being the reward and share money equally, but this was not the case.
Adam Smith
Adam Smith
Adam Smith strongly believed that people worked the most and hardest when they earned enough money and made a profit. He thought that competition would force businesses to be better.
What are Mixed Economies?
What are Mixed Economies?
Mixed economies are capitalism and socialism combined. Capitalism is private businesses and socialism is schools. A lot of countries today have a mixed economy.
How are public schools an example of socialism?
How are public schools an example of socialism?
Public schools are an example of socialism because they are paid for by taxes and no student has to pay in order to attend public school; it is equal to all students.
How does the law of supply and demand relate to prices and efficiency?
How does the law of supply and demand relate to prices and efficiency?
The law of supply and demand relate to prices and efficiency because when the demand is high and supply is low, the prices raise and vice versa when the supply is high and demand is low, the prices go down. This helps the businesses produce the right amount of goods which will make it more efficient.
What problems can result from completely free markets?
What problems can result from completely free markets?
Some problems that can result from completely free markets are low-quality products being produced and sold, huge differences between rich and poor, and workers not being treated right and equally.
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