chapter 2 - and health care benefits, and free benefits in...

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Hanifa Ayunisa 01/05/2011 BA 101 Chapter 2 There are three different economic systems I have learned in this chapter; capitalism, socialism, and mixed economies. Each economic system has different rules how to manage its system to work. Capitalism is an economic system in which all of the means of production and distribution are privately owned and operated for profit. In this capital countries, people only have four basic rights; the right to private property, to own a business and to keep all of the business’s profits after taxes, to freedom of competition, and to freedom of choice. Therefore, I believe that some people might not like this economic system because they want to have more rights, like the right to own full profit. Another economic system is socialism. Socialism is an economic system based on the premise that some businesses should be owed by the government. I like this economic system better because I can get social equality, receive more free education,
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Unformatted text preview: and health care benefits, and free benefits in general. But there is also a big weakness in this economic system named erodes economic incentives. People tend not to work hard because they will receive everything for free, so they thing that they do not need to find a job. This kind of thinking is not really good because a person really needs to be motivated in able to make living. Because of these two economic systems have some weaknesses, there is also another economic system named a mixed economy; it is a mixed part of capitalist and sot. In this chapter, I also have learned about fiscal policy. So, if recession occurs, the government needs to decrease the taxes and increase the spending. Knowing this policy is good because if I read the magazine, I can now understand what the government needs to do when recession occurs....
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