Question

State and explain any two (2) characteristics of the capitalist economy and any two (2) characteristics in the socialist economy

Answer 1

The capitalist economy can be defined as those economy in which all economic decisions are made by the market forces of demand and supply curve.

The characteristics of the capitalist economy are;

1.

These basic questions are What to produce, how to produce and for whom to produce. All these question are determined by the market forces of demand and supply curve.

2.

The main player of the capitalist economy are market forces of demand and supply.

The Socialist economy can be defined as those economy in which all economic decisions are taken by the government.

The characteristics of the Socialist economy are;

1.

These basic questions are

What to produce, how to produce and for whom to produce. All these question are determined by the Government.

2.

The main player of the socialist economy is government.