A civil war erupted in southern republics years of economic stagnation left it far behind Western and Asian countries
<span>She is demonstrating
an attitude of skepticism. This is an attitude of which a person tries to doubt
a specific information or question and having to ask whether the claims is true
or not, whether if it is possible or not and whether an information is valid or
not.</span>
This economic system is called<em> socialism.</em>
Socialism is an economic system where everyone in the society equally owns the factors of production. The ownership as such is in the hands of the<em> government</em> that controls all means of production and distribution of goods.
The factors of production are : land, labor, capital and entrepreneurship.
In a socialistic economy, the land is owned by the state and private property is limited and difficult to obtain. Labor is heavily regulated and most people are employed in state-owned companies. Workers do not have many rights and they have to obey the government which also decides what is being produced and in which capacity ( planned economy ).
Socialism does not reward people for being entrepreneurial and competitive as competition is no existing and everybody reaps the same benefits of their work.
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