MANAGEMENT & SCIENCE UNIVERSITY
INTRODUCTION TO ECONOMICS
MATRIC ID: 012012051771
Comparison between the socialist, capitalist and the mixed economy | Capitalism | Socialism | Mixed Economy | Characteristics | * Private ownership of resources * Freedom of enterprise and choice * Consumers; sovereignty * Competition * Minimum government intervention | * Public ownership of resources * Central Planning Authority * Price mechanism of less importance * Central control and ownership | * Public and private ownership of resources * Price mechanism and economic plans used to make economic decisions * Government helps to control income disparity * Government intervention in the economy * Large cooperation between the government, public and business |
COMPARISON Capitalism : Capitalism is an economic system in which the means of production are privately owned and operated for profit, usually in competitive markets. Income in a capitalist system takes at least two forms, profit on the one hand and wages on the other. Socialist : Socialist economics are the economic theories and practices of hypothetical and existing socialist economic systems. A socialist economy is based on public ownership or independent cooperative ownership of the means of production. A socialist economy is a system of production where goods and services are produced directly for use Mixed : Mixed economy is an economy that includes a variety of private and public enterprise, reflecting characteristics of both capitalism and socialism.Most mixed economies can be described as market economies with strong regulatory oversight, in addition to having a variety of government-sponsored
Economic system An economic system is the structure that guides production, allocation of economic inputs, distribution of economic outputs, and consumption of goods and services in an economy.