1. List out two examples each for
Capitalist Economy Socialist Economy
and Mixed Economy.
Answers
Capitalist Economy
Singapore had an amazing period of economic development to get where it is today. It became where it is today. It became a manufacturing and financial centre because of it's open economic policies.
Capitalism has enabled New Zealand to develop advanced farming techniques without such a free and competitive market the country wouldn't be able to have as much success off of exporting commodities. (Exports contribute 30% of NZ GDP)
Socialist Economy
Cuba is one of the most well-known socialist economies, having a mostly state-run economy, a national healthcare program, government-sponsored education free for nationals at all levels, subsidized housing, utilities, entertainment, and even subsidized food programs. Together, these social programs compensate for the low salaries of Cuban workers, making them better off than their international counterparts in many other countries. As a socialist economy, Cuba has a primarily planned economy with around 80% of its workforce working in state-owned enterprises. Cuba does not have a stock exchange–a crucial indicator of a capital-free economy.
North Korea–the world's most totalitarian state–is another prominent example of a socialist economy. Like Cuba, North Korea has an almost entirely state-controlled economy, with similar social programs to those of Cuba. There is no stock exchange in North Korea either.
Around mid-1975, North Korea was better educated and more productive than China (based on international trade per capita). However, the economic and social situation has been precarious in North Korea since a massive famine hit the country between the years of 1994 and 1998.
Mixed Economy
United States is a mixed economy, as it leaves ownership of the means of production in mostly private hands but incorporates elements such as subsidies for agriculture, regulation on manufacturing, and partial or full public ownership of some industries like letter delivery and national defense. In fact, all known historical and modern economies fall somewhere on the continuum of mixed economies. Both pure socialism and pure free markets represent theoretical constructs only.
India too is a mixed economy and it has adopted this approach post-independence. The industrial policies implemented in the year 1948 and 1956 have helped the private and the public sector to co-exist. Also with the liberalization of the Indian economy, the opportunities fr the expansion and growth of the private sector are enhanced.