Question

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

1. capitalism

what is it?
an economic system based on private ownership for profit
who makes most economic decisions?
private individuals and businesses

1. communism

what is it?
state/community
who owns the resources?
for equal distribution

1. socialism

what is it?
resource state/community controls
one limitation (problem) of socialism:
potential inefficiencies from state control

1. industrialization

what does this word mean?
transformation from agrarian to manufacturing
how did it change where people lived?

1. gdp

what does gdp tell us about a country?
the higher the gdp the better the economy

Explanation:

1. Capitalism:

• What is it?: Capitalism is an economic system where private individuals or businesses own capital goods. The production of goods and services is based on supply and demand in the general market (a market economy), rather than through central planning (a planned economy or command economy). So, "An economic system based on private ownership for profit" is a basic description.
• Who makes most economic decisions?: In capitalism, private individuals and businesses make most economic decisions. They decide what to produce, how to produce, and for whom to produce based on profit - seeking motives and market forces.

1. Communism:

• What is it?: Communism is a socio - economic ideology that aims for a classless, stateless society in which the means of production (resources, factories, etc.) are owned and controlled by the community as a whole. So, a better definition could be “A socio - economic system aiming for collective ownership and a classless society”.
• Who owns the resources?: In communism, resources are owned by the community (in theory, it's a collective ownership, often interpreted as state - controlled in historical attempts as a transitional phase). So, “Resources are owned by the community (for equal distribution)” is in line with the concept (though the equal distribution is a goal).

1. Socialism:

• What is it?: Socialism is an economic system where the state or community has significant control over the means of production. It can range from state - owned enterprises to a mixed - economy with strong social welfare and regulatory aspects. So, “A system where the state/community controls some or all resources” is a simple description.
• One limitation (problem) of socialism: One potential limitation is the potential inefficiencies from state control. State - run enterprises may lack the profit incentive that drives innovation and efficiency in a market - based (capitalist) system. Bureaucracy in state - controlled production can lead to slower decision - making and less responsiveness to consumer needs.

1. Industrialization:

• What does this word mean?: Industrialization is the process by which an economy transforms from an agrarian (farming - based) economy to one dominated by manufacturing. This involves the growth of factories, use of machinery, and a shift in the labor force from agriculture to industry. So, “Transformation from agrarian to manufacturing - dominant economy” is correct.
• How did it change where people lived?: Industrialization led to urbanization. People moved from rural areas (where agriculture was the main economic activity) to cities. Cities offered jobs in factories, and the growth of manufacturing centers created a demand for a concentrated labor force.

1. GDP:

• What does GDP tell us about a country?: GDP (Gross Domestic Product) measures the total value of all final goods and services produced within a country's borders in a specific time period. A higher GDP generally indicates a larger economic output. However, it doesn't fully capture quality of life (e.g., it doesn't account for income distribution, environmental costs). But as a basic measure, “It measures the total economic output of a country (higher GDP often associated with a larger economy)” is an improvement over “The higher the GDP the better the economy” (since “better” is too simplistic as GDP has limitations).

Answer:

1.

• What is it? An economic system based on private ownership for profit.
• Who makes most economic decisions? Private individuals and businesses.

2.

• What is it? A socio - economic system aiming for collective ownership and a classless society.
• Who owns the resources? Resources are owned by the community (for equal distribution).

3.

• What is it? A system where the state/community controls some or all resources.
• One limitation (problem) of socialism: Potential inefficiencies from state control.

4.

• What does this word mean? Transformation from agrarian to manufacturing - dominant economy.
• How did it change where people lived? Led to urbanization (people moved to cities for factory jobs).

5.

• What does GDP tell us about a country? It measures the total economic output of a country (higher GDP often associated with a larger economy).