Capitalism, Socialism & Communism Compared

What is the definition of capitalism according to the text?

• An economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market

• An economic system characterized by government ownership of capital goods and central planning of production and distribution

• An economic system characterized by barter trade and absence of currency

• An economic system characterized by communal ownership of capital goods and equal distribution of resources

Which economic system advocates the vesting of the ownership and control of the means of production and distribution in the community as a whole?

• Traditional economy

• Socialism

• Capitalism

• Communism

According to the text, what is the stage following capitalism in the transition of a society to communism, characterized by the imperfect implementation of collectivist principles?

• Traditional economy

• Market economy

• Command economy

• Socialism

Which economic system is characterized by goods being owned in common and available to all as needed?

• Mixed economy

• Capitalism

• Socialism

• Communism

What is the main difference between public goods and private goods in economics?

• Public goods are excludable and non-rivalrous, while private goods are non-excludable and rivalrous

• Public goods are excludable and rivalrous, while private goods are non-excludable and non-rivalrous

• Public goods are non-excludable and rivalrous, while private goods are excludable and non-rivalrous

• Public goods are non-excludable and non-rivalrous, while private goods are excludable and rivalrous

Which economic system is guided by customs and traditions, with little to no currency involved?

• Capitalism

• Traditional economy

• Socialism

• Communism

What is the term for a theory or system of social organization that advocates the elimination of private property?

• Mixed economy

• Capitalism

• Socialism

• Communism

Which economic system is characterized by a mix of traditional, command, and market economies?

• Capitalism

• Socialism

• Communism

• Mixed economy

What is the main characteristic of a command economy?

• A mix of traditional, command, and market economies

• Customs and traditions guide the factors of production

• Consumers guide the factors of production

• A central authority guides the factors of production

Which economic system is based on the idea of consumers generally guiding the factors of production?

• Communism

• Mixed economy

• Socialism

• Capitalism