how would you differentiate between a capitalist and socialist economy
Answers
Answer:
A capitalist economy relies on free-markets to determine, price, incomes, wealth and distribution of goods. A socialist economic system is characterised by greater government intervention to re-allocate resources in a more egalitarian way.
Answer:
Cap
The main difference between capitalism and socialism is the extent of government intervention in the economy.
A capitalist economic system is characterised by private ownership of assets and business. A capitalist economy relies on free-markets to determine, price, incomes, wealth and distribution of goods.
A socialist economic system is characterised by greater government intervention to re-allocate resources :
a more egalitarian way.
capitalism-vs-socialism
There are also different aims of the economic systemsCapitalism is unconcerned about equity. It is argued that inequality is essential to encourage innovation and economic development.
Socialism is concerned with redistributing resources from the rich to the poor. This is to ensure everyone has both equal opportunities and in some forms of socialism – equal outcomes.