![]() ![]() It produces more wealth, but can distribute it somewhat unevenly. Generally speaking, capitalism is more efficient and less equalitarian in terms of who gets what. Remember that capitalism is part of what we call classical liberalism An economic and political system that relies on democratic participation for political decisions and on markets for economic decisions.-a system that relies on open elections and on markets. Capitalism An economic system that allows private ownership of productive resources, and makes production and pricing decisions via markets.: Private ownership of productive resources, with decisions made largely by consumers and businesses deciding on their own what to produce and what to buy.Take a step back to the isms we talked about in chapter three, and think about them with an eye to how they make economic decisions, and what the advantages and disadvantages of each system is: As a society, in the United States we have largely opted for a market-based approach, but not always. As with market-based systems, government-based systems have their strengths and weaknesses. Government would decide, on behalf of people, what will be produced and how much each item will cost. The alternative to market-based economic decision-making is some kind of government-based model. As we’ll see, markets are very good at some things and perhaps not so good at others. Markets let consumers and business owners vote with their dollars, euros or yen on what will be for sale, what the price will be, and which firms survive to produce another day. So, you can start and own a business, and consumers will decide if they want your business around. Capitalism means private ownership of productive resources, with a reliance on markets to decide what gets produced and how much it will cost. Our basic economic system, as you probably know, is called capitalism. Understand how market-based and planning-based economies work. ![]() Know the difference between capitalism, socialism, communism and fascism.zip file containing this book to use offline, simply click here. You can browse or download additional books there. More information is available on this project's attribution page.įor more information on the source of this book, or why it is available for free, please see the project's home page. Additionally, per the publisher's request, their name has been removed in some passages. However, the publisher has asked for the customary Creative Commons attribution to the original publisher, authors, title, and book URI to be removed. Normally, the author and publisher would be credited here. This content was accessible as of December 29, 2012, and it was downloaded then by Andy Schmitz in an effort to preserve the availability of this book. See the license for more details, but that basically means you can share this book as long as you credit the author (but see below), don't make money from it, and do make it available to everyone else under the same terms. This book is licensed under a Creative Commons by-nc-sa 3.0 license. ![]()
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