Economic Systems

​Amount of government control: little

Businesses can make whatever products they want with very little government control.

There is a lot of competition between businesses to win over customers.

Customers have many options when buying goods and services

Prices are determined by supply and demand, not by the government.

Amount of government control: some

The government owns some important businesses, such as healthcare, transportation, and banking.

The government provides services to all citizens, such as health care, paid for by higher taxes.

​Socialist Economy

There is still some private ownership, but more government involvement than in a free market.

There are more choices than in communism but fewer than in a free market.

Amount of government control: high

The government owns all businesses, and private property is not allowed.

The government decides what products will be made, how much to produce, and sets the price.

Communism

There are few choices for products, and shortages may occur.


It is usually difficult to become wealthy in a communist system.