Question

Match the characteristics with the economic systems. Answers may be used more than once.

Answer 1

The economic systems and their characteristics are:

Capitalism:

• emphasizes competition
• rewards personal initiative
• pursuit of profit
• advocated by Adam Smith, the “father of modern economics” and author of The Wealth of Nations; doctrine of economic opportunity with little to no government intervention
• doctrine that people can be more prosperous without government intervention

Mercantilism:

• private ownership
• governments sought to gain power by accumulating more wealth than other nations

Communism:

• grew out of socialism
• was a reaction to capitalism
• controls not only all factors of production, but all areas within society
• classless society
• system most associated with Karl Marx, co-author of The Communist Manifesto with Friedrich Engels
• North Korea

Socialism:

• seeks an economy under the collective social control of the working class
• Sweden

What are types of economic systems?

Capitalism or Free enterprise is a system that encourages people to get into business for the purpose of making profit. It also allows for private ownership of assets.

Communism does not allow for private ownership and does not believe in a society that has classes. North Korea is an example even though it has classes.

Socialism is a system that calls for the economy to be run by the working class while mercantilism calls for governments to accumulate wealth.

Find out more on Socialism at brainly.com/question/839803

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