Types of Economies — Flashcards

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An economy is a system of production, consumption, distribution, investment, and exchange of goods and services. It includes all production units such as farms, factories, shops, banks, schools, hospi…

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Economic activities are classified into three groups: primary activities such as agriculture, forestry, fishing, mining and quarrying; secondary activities such as manufacturing and construction; and …

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An economy has several features: it deals with the economic life of a community, faces scarcity of resources, organises consumption as well as production, includes economic institutions, maintains coo…

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A capitalistic economy is a system in which the means of production such as land and capital are privately owned. Economic activities are guided by self-interest and profit motive. It is also called a…

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Capitalism is a system in which property is privately owned and economic decisions are privately made. This definition highlights private ownership and private decision-making as the core of capitalis…

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A capitalist economy is a system of economic organisation in which free enterprise, competition, and private ownership of property generally prevail. The definition shows that capitalism depends on ma…

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The main characteristics are private property and inheritance, freedom of enterprise and contract, freedom of consumption, free market, profit motive, class conflict, price mechanism, competition, and…

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Class conflict arises because capitalism divides society into rich and poor groups. The rich own most productive resources and the poor depend on wages. Karl Marx held that this conflict is inherent i…