An economy is one of the strong forces to balance the standard of living and political power, so it is important to understand how an economy functions. An economic system is defined as a group of people following the same principle to facilitate economic activities with identical purposes. Capitalism and Socialism are types of economic systems which provide effective methods to organize markets. However, Capitalism is a better form in terms of authorities, price control, and competition. First of all, the primary area Capitalism and Socialism are different is an authority to control the cost and an amount of products.
This is a system where government and markets play a role in the economy. Mostly, the government plays a limited role. The government passes regulations and laws to correct market failures and promote social welfare. Socialism and Capitalism While a capitalist economy allows private sectors to own the means of production, socialism goes the opposite way. In a socialist economy, all business properties are state owned.
In addition, the government cannot intervene in any economic activity but only maintain law and order in the country. Capitalism also provides many incentives to consumers, producers and owners of economic resources to use the resources available to them as soon as possible. This situation is considered as economic efficiency because it refers to the full utilization of factors of production. According to Jain and Khanna (2006), mixed economic system is a synthesis of characteristics of both capitalism and socialism. Mixed economy has two main focused which are social welfare and government interference in economic activities.
This included 70 cities and 2,000,000 sq. miles of land (Doc. E). All his hard work was destroyed only after 10 years; it is hard to call this an empire compared to the other empires around during the time, and before and after the time that lasted hundreds of years. His empire was nothing compared to these massive long lasting empires.
Our global world is full of different cultures, religions and different ideologies. The greediness of humans for power has caused conflicts which sadly lead to war. But humans are not only selfish and bad, they also are curious and good. The human curiosity has lead to the age of exploration. The age of exploration was a period from 1400 to 1600 in which Europeans traveled the rest of the world in search of goods, raw materials, land, and trade partners according to the Cambridge Dictionaries Online.
As the Europeans started to settle into the time of the 1400s, a new longing for exploration washed over civilization, more commonly known as the Age of Exploration. Over the years that the Age of Exploration took place, it brought its fair share of benefits and faults. This time period brought things like the commercial revolution and advancements in technology to the Europeans. As on the other side of the spectrum brought a Plague of misfortune to the many around the world. It was from these qualities that the Age of Exploration had that made it a debatable topic weather it was solely good or bad.
Politics is the practice and theory of influencing other people on a global level. It is also the study or practice of the distribution of power and resources within a given community as well as the interrelationship between communities. Aristotle described politics as a practical science, since it is concerned with the noble action or happiness of the citizens. Politics affects our everyday lives as governments implement policies that have social and economic impacts on us such as wages, taxes and health care. We all have a part to play in society such as adhering to laws in order to live peacefully among each other.
They think that markets ought to not be permitted to benefit while causing potential hurt to the environment by utilizing up all accessible assets and contaminating the planet. One of the most vital characteristics of a advertise economy, also called a free venture economy, is the part of a limited government. Most economic choices are made by buyers and dealers, not the government. A competitive market economy advances the productive utilize of its resources. It is a self-regulating and self-adjusting economy.
Political economy is a fascinating subject to study. Politics and economy are two of the most important components in today’s world. They decide how people live, think, and work from the dawn of the humanity. Our civilization is built on these two components. The economy decides the political system, regime type, and electoral system.