Question

Define the terms - a) socialism b) capitalism.

Answer 1

A) SOCIALISM :- Socialism is a range of economic and social systems characterised by social OWNERSHIP and democratic control of the means of production as well as the political theories and movements associated with them.Social ownership may refer to forms of public, collective or cooperative ownership, or to citizen ownership of equity.There are many varieties of socialism and there is no single definition encapsulating all of THEM, though social ownership is the common element shared by its various forms

B) CAPITALISM :- Capitalism is an economic system based upon private ownership of the means of production and their operation for profit.Characteristics central to capitalism include private property, capital accumulation, wage labor, voluntary exchange, a price system and competitive markets. In a capitalist market economy, decision-making and investment are determined by every owner of wealth, property or production ability in financial and capital markets, whereas prices and the distribution of goods and services are mainly determined by competition in goods and services markets.