2. In capitalism, people and companies own things and the means to make those things. In socialism, things and the means to make those things are, to varying degrees, are owned by the group to which the label socialism is applied. Neither system is bad, but both systems are imperfect by design in that they are impossible to implement in true form.
3. I would rather start my business under a capitalism economy. With capitalism you are free to succeed or fail according to your efforts, abilities, and the conditions under which you are living. I would start a food business; because everyone gets the same values in the capitalism economy so I think it would be fun to run.
4. A modified free enterprise system is an economic system that has bases on capitalism but has some government interference so there are no monopoles. The United States is referred to free enterprise. With a democracy our businesses run on the success and not just like capitalism where everything is close to being equal.
7. Local governments and the United States send out there services to household consumers and business. The household consumers and businesses help out the resource and product market. This all flows back into taxes which lets makes a circular flow and then just recycles it. I say our government runs with a circular flow because we try to help out our businesses which will make the consumers buy more products which will help the government get tax money.
9. Absolute advantage is the ability to produce a specific product more efficiently than any other nation. Comparative advantage is the ability to produce a specific product more efficiently than any other product. Goods and services are produced more efficiently when each country specialize in the products for which it has a comparative advantage.
11. We can have an organized trading system due to rules and regulations that are in place....
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