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Notes
Types of economic systems
Capitalism
Features -
free market economy
production and prices determined by market forces
no gov interference
privately owned
large scale production
profit institution
wages are highly bargained
eg - UK, US
Advantages -
growth and prosperity
Notes 1
, production of high quality at low costs
Disadvantages -
leads to monopoly
non utilization of resources
inequalities of income and wealth
depression and unemployment
Socialism
Features -
means of production regulated by gov
command economy
social ownership
central planning
equality of income and opportunity
eg - Russia, China
Advantages -
equal distribution
absence of business fluctuation
right utilization of resources
absence of monopoly
Disadvantages -
fixed occupation
Notes 2
Notes
Types of economic systems
Capitalism
Features -
free market economy
production and prices determined by market forces
no gov interference
privately owned
large scale production
profit institution
wages are highly bargained
eg - UK, US
Advantages -
growth and prosperity
Notes 1
, production of high quality at low costs
Disadvantages -
leads to monopoly
non utilization of resources
inequalities of income and wealth
depression and unemployment
Socialism
Features -
means of production regulated by gov
command economy
social ownership
central planning
equality of income and opportunity
eg - Russia, China
Advantages -
equal distribution
absence of business fluctuation
right utilization of resources
absence of monopoly
Disadvantages -
fixed occupation
Notes 2
