Scribd Logo
Upload

Welcome to Scribd!

  • 257 views

    Characteristics of Today's Economy

    Uploaded by

    AbdulRehman
    Capitalism is characterized by five main traits: [1] A two-class system split between the capitalist class that owns production and the working class that sells their labor. [2] Companies exist solely to make a profit. [3] Governments aim to minimize intervention in markets. [4] Competition is necessary to prevent monopolies from controlling prices. [5] Capitalist systems must be willing to change and adapt to new technologies.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Characteristics of Today's Economy

    Uploaded by

    AbdulRehman
    257 views1 page
    Capitalism is characterized by five main traits: [1] A two-class system split between the capitalist class that owns production and the working class that sells their labor. [2] Companies exist solely to make a profit. [3] Governments aim to minimize intervention in markets. [4] Competition is necessary to prevent monopolies from controlling prices. [5] Capitalist systems must be willing to change and adapt to new technologies.

    Original Description:

    Introduction to Entrepreneurship Helpful for BS Education, BZU, Multan

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Capitalism is characterized by five main traits: [1] A two-class system split between the capitalist class that owns production and the working class that sells their labor. [2] Companies exist solely to make a profit. [3] Governments aim to minimize intervention in markets. [4] Competition is necessary to prevent monopolies from controlling prices. [5] Capitalist systems must be willing to change and adapt to new technologies.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    257 views1 page

    Characteristics of Today's Economy

    Uploaded by

    AbdulRehman
    Capitalism is characterized by five main traits: [1] A two-class system split between the capitalist class that owns production and the working class that sells their labor. [2] Companies exist solely to make a profit. [3] Governments aim to minimize intervention in markets. [4] Competition is necessary to prevent monopolies from controlling prices. [5] Capitalist systems must be willing to change and adapt to new technologies.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Characteristics of Today’s Economy

    There are several different types of economic systems employed by nations. Two such types,
    socialism and capitalism are the most common. Capitalism is often referred to as a free market
    economy in its purest form; a common type of socialism is communism. Rooted in these
    economic systems are political and social elements that influence the degree of purity of each
    system. In other words, many capitalist nations have elements of socialism interwoven. So even
    though there are different degrees or levels of commitment to the ideals of capitalism, there
    are several traits that are common among all capitalists.
    1. A Two-Class System
    Historically, a capitalist society was characterized by the split between two classes of individuals
    —the capitalist class, which owns the means for producing and distributing goods and the
    working class, who sell their labor to the capitalist class in exchange for wages. The economy is
    run by the individuals or corporations who own and operate companies and make decisions as
    to the use of resources. But there exists a “division of labor” which allows for specialization,
    typically occurring through education and training.
    2. Profit Motive
    Companies exist to make a profit. The motive for all companies is to make and sell goods and
    services only for profits. Companies do not exist solely to satisfy people's needs. Even though
    some goods or services may satisfy needs, they will only be available if the people have the
    resources to pay for them.
    3. Minimal Government Intervention
    Capitalist societies believe markets should be left alone to operate without government
    intervention. However, a completely government-free capitalist society exists in theory, only. A
    purely capitalist society would allow the markets to set prices based on demand and supply for
    the purpose of making profits. 
    4. Competition
    True capitalism needs a competitive market. Without competition, monopolies exist, and
    instead of the market setting the prices, the seller is the price setter, which is against the
    conditions of capitalism. 
    5. Willingness to Change
    The last characteristic of capitalism is the ability to adapt and change. Technology has been a
    game changer in every society, and the willingness to allow change and adaptability of societies
    to improve inefficiencies within economic structures is a true characteristic of capitalism. 
    Capitalism in its purest form is a society in which the market sets prices for the sole purpose of
    profits and any inefficiency or intervention that reduces profit making will be eliminated by the
    market.

    Prof. A. R. Somroo
    Department of Education
    Govt. Emerson College, Multan

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy