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Capitalism, Socialism, and Communism

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wafflequeen's version from 2015-04-16 23:06

Capitalism, Socialism, and Communism

Question Answer
3 Concepts of CapitalismPrivate Ownership, Profit Motive, and Market Economy
Private Ownership"Free Enterprise" system - Capital belongs to individuals who are FREE to do what they wish with it
Profit MotiveSupply and Demand - Greater popularity yields greater production to make a profit
Market EconomyMoney value can be placed on everything in the marketplace
Supply (in terms of price)"More of a good will be supplied the higher its price" and vice versa
When the quantity demanded is greater than the quantity supplied, the price...increases/goes up
When the quantity supplied is greater than the quantity demanded, the price...decreases/goes down
Criticism of CapitalismUneven distribution of wealth
Effects of CapitalismProfit for owners of production/business, market competition, personal responsibility
Socialismsociety (government) owns means of production & key infrastructure
Principles of SocialismEquality of all people, cooperation is better than competition (in industry)
CommunismExtreme form of socialism in which "all people" own the means of production as the state "withers away" and produces a classless society
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