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Economics (Free Enterprise/Capatilism (PROS (That's because consumers…
Economics
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Socialism
a political and economic theory of social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.
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PROS
Workers are no longer exploited, since they own the means of production.
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CONS
The biggest disadvantage of socialism is that it relies on the cooperative nature of humans to work.
A second related criticism is that it doesn't reward people for being entrepreneurial and competitive.
A third possibility is that the government set up to represent the masses may abuse its position and claim power for itself.
Traditional
a system that relies on customs, history and time-honored beliefs. Tradition guides economic decisions such as production and distribution.
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CONS
Traditional economies are vulnerable to changes in nature, especially the weather.
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Communism
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CONS
The main problem is that it is difficult for the planning group to get up-to-date information about consumers' needs.
To compensate, citizens create a black market to trades the things the command economy doesn't provide. This destroys the trust in the planners.
a political theory derived from Karl Marx, advocating class war and leading to a society in which all property is publicly owned and each person works and is paid according to their abilities and needs.
