Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Characteristics central to capitalism include private property, capital accumulation, wage labor, voluntary exchange, a price system and competitive markets. True: Things are in theory produced for the good of the whole of the nation (or society, worker ect) 2. True: Thats what drives capitalism and the free market (the law of supply and demand) 3. There are benefits and drawbacks to both.
Its not as simple as one being good and the other bad.
Arguments in favour of Capitalis-A strong right to private property. This allows for investment and economic growth, in areas where this. The economic system of capitalism developed as a response to mercantilism and the industrial revolution. Terms in this set (12) Adam Smith.
Socialism is an economic system where the means of production, such as money and other forms of capital, are owned by the state or public. Under a socialist system , everyone works for wealth that is in turn distributed to everyone. Under capitalism , you work for your own wealth.