Capitalism, Socialism, And Mixed Economies Essay examples

1211 Words Jul 25th, 2015 null Page
Economy can be defined as, the activities by which a geographic area will support itself through the production, and consumption of its goods and services. Goods are products that can be seen or touched, such as a house or a taco. Services are intangible processes that someone or something can do to create products, such as a carpenter building a house or a chef cooking food. Three of the economic systems are capitalism, socialism, and mixed economies. There are no “pure” capitalism or “pure” socialism economies; they overlap with the result being a mixed economy. When examining these three economies, it becomes clear there are pros and cons to each of them.
Capitalism is an economic system that privately owns and controls its capital goods, and production of goods and services for personal profit and without government involvement. Capital goods are tangible items used to produce goods or services, such as machinery or office buildings. Ideal Capitalism has four components, first that there is private ownership of the means of production, second that there is a pursuit of profit for the owner, third is competition, and fourth is that there is a lack of government involvement in the production or distribution of the goods or services (Kendall, 2015).
One of the main principles of capitalism is the pursuit of personal profit. It is believed that the entire society will benefit from the pursuit of prosperity. The effects of such an economy will ripple out as…

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