Economic Systems

Economic systems refer to the type of economic structure a nation has. For example, socialism is a type of economic system which relies on centralised control of resources. Other types of economic systems may rely more heavily on the free market, whilst others might be a mix of the two.

Communism vs Capitalism

Capitalism is an economic system where the means of production are privately owned and operated for profit, while communism is a political and economic system where the means of production are owned and controlled by the community as a whole, with no individual ownership.

Examples of Socialism in America

Examples of Socialism in America

In America, examples of socialism include the New Deal programs, progressive taxation and social welfare policies, public education and healthcare systems, government investment in public infrastructure and services, and the influence of labor unions and workers’ rights movements.

Socialism vs Capitalism

Socialism vs Capitalism

Socialism is an economic system where the means of production are collectively owned and resources are allocated based on need, while capitalism is an economic system where private individuals and businesses own and operate the means of production for profit and resources are allocated based on market demand and supply.


Socialism vs Communism

Table of Contents Introduction Historical Background Fundamental Principles Economic Structures Political Systems Real-World Examples Criticisms and Challenges Conclusion FAQs Socialism vs Communism Written by Paul Boyce Posted in Microeconomics > Economic Systems Last Updated May 3, 2023 Introduction Socialism and Communism are often used interchangeably to describe economic systems that challenge the principles of capitalism.

Private property to show the importance of property rights

The Importance of Property Rights

An efficient free market is reliant on strong property rights as a fish is to water. Its purpose is to ensure that competitive control over economic resources is resolved in a peaceful way. Rather than disputes leading to violence, they can be resolved through the legal system.