Economic system where the major resources and production are owned and controlled by the government. Theory: Equal sharing of work, needs, and benefits.

Economic system where private individuals and businesses own the means of production and carry on an exchange of goods and services through supply and demand. Also called the free-enterprise system.

Government decides what to make, how much to make, what to charge, and how long it should take.

Individuals or companies decide what to make, charge, etc. Consumers will pay for quality and value.

Materials are not always available to produce the desired product.

Materials are abundant. Materials can be bought for a price

Land and companies are owned by the government. Government makes all the profit to share equally to all the people

Land and companies are individually owned or owned by a group of individuals (stock holders)

Workers are assigned jobs for the government’s needs - not necessarily ability.

Workers choose where to work. Companies decide who to hire. Either party can terminate employment

No competition – Only what the government provides is available.

Competition brings a variety of products and better prices

Long lines, shortages, high prices, and little variety

Supermarkets

Black market trades in consumer goods

Black market deals in illegal items

No freedom of speech, movement, or assembly

Freedom of speech, movement, and assembly

No incentive to work. Workers are paid equally regardless of production

Paid by quality and production

Focus is often on quantity rather than quality.

People will buy products that are well made at a fair price. Supply and Demand

1 party government (Socialist) examples: North Korea, Cuba, China, and Vietnam

At least a two party government (Democracy) examples: USA, UK, Germany, and Australia

The group is very important – one does what is going to help the whole society.

No unemployment – government gives jobs to all

Focus on heavy industry (factories and mines) not light industry (consumer goods)

Quantity over Quality sometimes caused serious pollution problems.

Goal during the Cold War was to be #1 in industry, space, and weapons.

Individual rights – The Bill of Rights

Government’s role is to help trade and protect people

US produces enough food to feed the entire world

US has some of the most expensive workers in the world – unions, minimum wage, pollution controls, work place conditions

Goal during the Cold War was to stay one step ahead of the Communists.