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
<h3>What are types of economic systems?</h3>
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.
