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Predominant Economic Systems

Predominant Economic Systems - gain a larger share of the...

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Predominant Economic Systems The two predominant economic systems today are capitalism and socialism. Between  these two  opposite extremes lies a continuum of variations on the models. Capitalism Three key principles define the economic system of capitalism:  Private ownership of production and distribution of goods and services Competition, or the laws of supply and demand directing the economy Profit-seeking, or selling goods and services for more than their cost of production Laissez-faire  (French for “hands off”) capitalism represents a pure form of capitalism not practiced by  any nation today. The ideology driving today's capitalism says that competition is in the best interest  of consumers. Companies in competition for profit will make better products cheaper and faster to 
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Unformatted text preview: gain a larger share of the market. In this system, the market—what people buy and the laws of supply and demand—dictates what companies make, and how much of it they make. Workers are motivated to work harder so they can afford more of the products they want. Supporters of a capitalist system point to the higher production, greater wealth, and higher standard of living displayed by capitalist countries such as the United States. Critics, however, charge that while the standard of living may be higher, greater social inequity remains. They also denounce greed, exploitation, and high concentration of wealth and power held by a few....
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