Question

"Most world economic system are purely capitalistic" Do you agree or disagree? Explain.

Answer 1

I disagree with this statement. Capitalism can be defined as economic system where the government would not determine any resources or other significant economic segments. Instead, the entire economic system will be regulated by the private businesses or individuals; and law of demand and supply. It permits the economic activities to grow exponentially. It is the fundamental fact of economics that the more money the business earns, the more the business will have to invest in production activities, and hence can generate more revenues. It promotes innovation, gives the limitless opportunity, and has not been proven inferior in compared to the alternative economic systems. However in the today's world there is no pure communist economy exists in the

There reason is that in an economy there will be some elements of socialism also so that the government acts to ensure the welfare of the people such as social security system and government-enabled healthcare system. Also the government controls or partially controls several items or services, such as education, postal delivery, courts, roads, and hospital care. It directly benefits as it provides us stability in the environment, public education, and national security.