8.1 Economic Systems

In a capitalist economy, the laws of supply and demand determine price.

Critics of capitalism assert that

government ownership of means of production

private individuals or corporations control the factors of production

financial support given by the government through taxation to people in need

Capitalism is also called a

the rivalry between companies selling similar products and services with the goal of achieving revenue, profit, & growth

Focus on differences within a society

government plans how the economy will develop

All businesses compete with one another for profit, preventing any one business from gaining power over the entire field

doctrine opposing governmental interference in economic affairs

the government controls all means of production and thus creates the ultimate form of monopoly

people put land, labor, and capital to productive use

evenly distributed property is a feature of a capitalist economy

What kind of tax rates do socialist economies generally have?

Which is a factor of production?

Karl Marx believed that the bourgeoisie would overthrow the proletariat.

happens because prices are regulated by the laws of supply and demand

One of the benefits of capitalism is

What is the benefit of competition in a free market system?