Question

capitalism vs. communism
in the definitions and give one example when asked.

1. capitalism

what is it?
________________________
who makes most economic decisions?
________________________

1. communism

what is it?
________________________
who owns the resources?
________________________

1. socialism

what is it?
________________________
one limitation (problem) of socialism:
________________________

1. industrialization

what does this word mean?

Explanation:

1. Capitalism:

• What is it?
• An economic system based on private ownership of the means of production and the creation of goods or services for profit.
• Who makes most economic decisions?
• Private individuals and businesses.

1. Communism:

• What is it?
• A socio - economic system where the community (in theory, the state representing the people) owns all resources and means of production, and aims for an equal distribution of wealth and resources based on the principle "from each according to their ability, to each according to their need".
• Who owns the resources?
• The community/state (in a theoretical pure form).

1. Socialism:

• What is it?
• An economic system where the means of production are partially or mostly owned and controlled by the state or the community. It aims to balance economic efficiency with social welfare, often through measures like public provision of key services (healthcare, education) and some regulation of private enterprise.
• One limitation (problem) of socialism:
• Potential inefficiencies due to large - scale state control, which may reduce the profit - driven innovation incentive present in more market - oriented systems. Also, in some implementations, there can be issues with bureaucracy in resource allocation.

1. Industrialization:

• What does this word mean?
• The process by which an economy transforms from being primarily agrarian to one dominated by manufacturing industries. It involves the development of factories, use of machinery, and a shift of the labor force from agriculture to industrial jobs.

Answer:

1.

• Capitalism: An economic system based on private ownership for profit.
• Economic decisions: Private individuals and businesses.

2.

• Communism: State/community - owned resources for equal distribution.
• Resource owners: Community/state.

3.

• Socialism: State/community - controlled means of production for welfare.
• Limitation: Potential inefficiencies from state control.

1. Industrialization: Transformation from agrarian to manufacturing - dominated economy.