Economic Systems Compared
11th Grade · Social Studies · 45 min· Compare And Contrast Free Enterprise, Socialist, And Communist Economies In Various Contemporary Societies, Including The Benefits Of The U.s. Free Enterprise System; And
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Learning Objective
I can compare and contrast the economic systems of free enterprise, socialism, and communism.
- 1
In a planned economy, the government controls the factors of production, whereas in a free market economy, individuals own the factors of production.
- 2
The circular flow model demonstrates how households and businesses exchange goods and services and resources, with the government also participating through purchases, taxes, and transfer payments.
- 3
Modern economies are generally mixed economies, incorporating elements of both free markets and government intervention, with the optimal balance depending on personal values and societal goals.
