Economics
The social science concerned with the production and consumption of goods and services and the analysis of the commercial activities of a society. ~ thefreedictionary.com
In other words, economics is all about money.
Capitalism
An economic system in which the means of production and distribution are privately or corporately owned and development occurs through the accumulation and reinvestment of profits gained in a free market. ~ thefreedictionary.com
Communism
An economic system characterized by the collective ownership of property and by the organization of labor for the common advantage of all members. ~ thefreedictionary.com
| Capitalism | Communism | ||
| Private Ownership Private Property Personal Income Unequal Wealth Unequal Social Status Social Classes Individual Decisions Individualized |
State Ownership Communal Property Income Redistribution Equal Wealth Equal Social Status Classless Society Government Decisions Collectivized |
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| Laissez-Faire (Let It Be) Invisible Hand Supply and Demand Competition Free Market Free Enterprise Profit Motive |
Government Intervention Visible Control Available Supply Cooperativism Controlled Market Controlled Enterprise Production Motive |
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| Adam Smith The Wealth of Nations |
Karl Marx Das Kapital + Communist Manifesto |
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Practice – Questions
1. Which of the following characterizes capitalism?
A. communal property
B. income redistribution
C. state ownership
D. private property
2. Which of the following characterizes capitalism?
A. government intervention
B. controlled market
C. laissez-faire
D. collectivized
3. Which of the following characterizes communism?
A. Adam Smith
B. Karl Marx
C. Adam Sandler
D. Groucho Marx
4. Which of the following characterizes communism?
A. classless society
B. social classes
C. unequal social status
D. invisible hand
5. Which of the following characterizes both capitalism and communism?
A. private property
B. state ownership
C. income redistribution
D. history of Cold War
Practice Answers
1. D. private property
2. C. laissez-faire
3. B. Karl Marx
4. A. classless society
5. D. history of Cold War