Economic System

In: Business and Management

Submitted By congyang27
Words 1923
Pages 8
Microeconomics Paper: Economic systems
Yang Cong
Professor Memmos

Aug 1st, 2012
Table of Contents
1, Introduction of economic systems
2, the analysis of capitalism
3, Example of capitalism: the U.S.
4, the analysis of socialism
5, Example of socialism: China
6, the analysis of communism
7, Example of communism: North Korea
8, my favorite one is socialism
9, Conclusion

There are three main economic systems in the world which are capitalism, socialism and communism. Nowadays, most developed countries are capitalism and they have certified that capitalism is better; the greatest developing country which owns the second high GDP in the world, China, is socialism, it seems that socialism is not bad; only a few countries are still communism like North Korea which has a low economic increment speed. Different systems have their own advantages and disadvantages, so it is necessary for the government to figure out which one is suitable for their countries.
“Capitalism is an economic system that is based on private ownership of the means of production and the creation of goods or services for profit. Competitive markets, wage labor, capital accumulation, voluntary exchange, and personal finance are also considered capitalistic (Wikipedia).” Capitalism can greatly promote economic development, this is the main feature of capitalism. The necessary material of human is produced by human labor, the purpose of economic activity is to save labor time which is also the greatest feature of capitalism. Through the establishment of guarantees of social capital commenced a fully free system which is a mechanism for promoting the development of social. Everyone wants to live better, capitalism provides more and more opportunities to make money by efficient ways. Although capitalism has a lot of advantages, it still has disadvantage which is lack of government control…...

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