Concept
What are the main features of capitalism, communism, socialism, and mixed economies?
IntroductionToBusiness OP 8D04gAa / 1.3. How Business and Economics Work*
"The Basic Economic Systems of the World. Capitalism: Businesses are privately owned with minimal government ownership or interference. There is complete freedom of trade and no or little government control. Strong incentives to work and innovate exist because profits are retained by owners. Each enterprise is managed by owners or professional managers with little government interference. The forecast for 2020 was continued steady growth, and an example is the United States. Communism: The government owns all or most enterprises. The government has complete control of markets. There is no incentive to work hard or produce quality products. Management is centralized by the government bureaucracy, with little or no flexibility in decision-making at the factory level. The forecast for 2020 was no growth and perhaps disappearance, with examples including Cuba and North Korea. Socialism: Basic industries such as railroads and utilities are owned by government. There is very high taxation as government redistributes income from successful private businesses and entrepreneurs. Some markets are controlled, and some are free. There is significant central-government planning, and state enterprises are managed by bureaucrats. These enterprises are rarely profitable. The forecast for 2020 was stable with probable slight growth, with examples including Finland, India, and Israel. Mixed Economy: Private ownership of land and businesses exists, but the government controls some enterprises. The private sector is typically large. Some markets, such as nuclear energy and the post office, are controlled or highly regulated. Private-sector incentives are the same as in capitalism, while incentives in the public sector are limited. Private-sector management is similar to capitalism, and the public sector is similar to socialism. The forecast for 2020 was continued growth, with examples including Great Britain, France, Sweden, and Canada."
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