Question

In a short paragraph, define the term economic systems. Then give two examples of different types of economic systems. Then, give at least 2 similarities and/or differences between the economic systems you chose.

Answer 1

Answer:

An economic system is an organizational system of the resources and production of a given territory, generally a country. In other words, it is the method by which the economic production of a country and the benefits it produces are organized, regulated and distributed.

The two best-known economic systems today are capitalism and socialism. In the first of these, production is regulated through free competition and little or no state regulation, while in the second, state participation occupies a large part of the country's production.

There are marked differences between the two economic systems: for example, capitalism seeks capital investment through low taxes, and strictly respects private property; while socialism seeks high taxes for a further redistribution of economic capacity, and property rights yield to the common welfare.