Capitalism vs Socialism 1. What is the main difference in capitalism vs socialism?
Extent of government intervention in the economy
2. A capitalist economy system is:
Private ownership of assets and business
3. A socialist economy system is:
Greater government interaction to re-allocate resources in an equal way
4. What are the problems with each system?
FOTOlena Ubi
C: inequality, market failure, monopolies / S: inefficiency of state industry, less incentives
5. Write about unemployment in the capitalist economic system.
State doesn't provide jobs, times of recession can be very high
6. What are price controls? What is the difference for the capitalist vs socialist economic system?
Price controls keep price at a "fair" level
C: Controlled by supply and demand, can use position to charge more S: set by govt, can lead to shortages
and surpluses