Economic TheoriesGuided Reading 1.4

Economic Theories ChartCapitalism Socialism Communis

mOwnership of Property

Principle of Operation

Choice of Work

Wages

Profits

Government’s Role

Government’s Involvement

Amount of Competition

Production Decisions

Economic Theories ChartCapitalism Socialism Communis

mOwnership of Property Private Government Government

Principle of Operation Government Best for all of society

Government makes al decisions

Choice of Work Yes No No

Wages Dependent on market Set by Government Set by Government

Profits Yes Equitable distribution No

Government’s RoleEnsure free competition Welfare State Full time responsibility

Government’s Involvement Free Market

Extensive social services Heavy

Amount of Competition High None None

Production Decisions Private Nationalization Command Economy

The United States has ELEMENTS of Socialism since we are a MIXED ECONOMYAny example of Government Programs is socialism

Public library

Welfare/Workman’s Comp

Social Security

President Obama’s Health Care

Highway System

Police and Fire Department

Public EducationPennDot

Amtrak So many

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MedicareMedicaid