Economic Systems

We’re learning how capitalism, socialism, and communism TRY to solve real-life problems. You’ll answer short questions as we go.

“Who usually makes economic decisions?”

• Capitalism → individuals + businesses

• Socialism → government + people share

• Communism → government controls most

Example Scenario:
A neighborhood park is messy and full of trash. People want it cleaned up.

Here’s how someone might explain what each system would TRY to do

Capitalism would try to fix the park by encouraging a private company or group to clean it up, possibly for money or donations.

Socialism would try to fix the park by having the government and the community work together to clean it and share the responsibility.

Communism would try to fix the park by having the government assign workers to clean it so everyone benefits equally.

Scenario: Not Enough Jobs
A town has 200 people but only 100 jobs. Many people can’t find work.

Scenario: Not Enough School Supplies
A school does not have enough notebooks, pencils, or paper for students.

Scenario: Sickness is spreading
A sickness spreads through town and lots of people need doctors.