CAPITALISM / PURE CAPITALISM
How many branches of capitalism are there?
Two
What is the definition of government control?
Economy and other sanctions are instituted by a governmental body
What is the definition of control over resources?
The ability to make decisions about how that resource is used.
What is an example of competition among businesses?
The Coca-Cola and Pepsi companies have been competing for a long time trying to attract more consumers than the other company.
What is an example of a mixed market economy?
United States businesses - Restaurants, pharmacies, farms, they all have to follow health and safety regulations mandated by the government
What is an advantage of pure capitalism?
Provides incentive for people to create interesting and new ideas/products
What is an advantage of a combination of free enterprise and government control?
Allows for built in checks and balance system.
What is an advantage of private ownership and control of resources?
Management of private companies does not have to answer to stockholders or investors.
Capitalism allows for more businesses to compete and make better and more affordable products for consumers.
It limits government interference
What is a disadvantage of pure capitalism?
It leads to a large economic disparity between social classes
What is a disadvantage of free enterprise?
Lack of government regulation leads to lower quality products and poor working conditions.
What is a disadvantage of Private ownership and control fo resources?
Smaller resources, lack of public confidence and poor protection of members.
What is a disadvantage of competition among businesses?
Competition could become unhealthy, and constantly lowering prices could lead to profit not being made.
What is a disadvantage of a mixed market economy?
It’s difficult to know how much the government should interfere with the economy
a free, private economic system that allows voluntary and competing private individuals to plan, produce, and trade without government interference
What is free enterprise?
An economic system where citizens can make their own economic decisions and start their own private businesses mostly unregulated by the government.
What is the definition of private ownership?
non-governmental legal personnel that own property which is different than public property, which is owned by a government entity.
What is the definition of competition among businesses?
when businesses compete against each other to make better and more affordable products for consumers in order to attract them to their business
What is a mixed market economy?
A system that combines aspects of both capitalism and socialism.
Wall Street and the stock market - Companies are able to publicly sell stocks that are bought by investors
What is an example of free enterprise?
Owning your own private property like a plot of land or a building.
What is an example of private ownership and control over resources?
Vitol, Cargill and The Schwartz Group companies
What is an another example of competition among businesses?
Mcdonalds and Burger King have a rivalry with each other about which one is better.
What is another example of a mixed market economy?
China’s economy - While China continues to have state owned businesses, it has a free market with other countries that allows for trading which contributes to its large economy. They also have some private owned businesses