Question

Explain the concept of Socialism and Capitalism.

Answer 1

Instructions: The answer to this question can be broken into 2 main parts:

1. Mention the following:
   • Define Socialism.
   • Impact of socialism.
2. Mention the following:
   • Define capitalism.
   • Impact of capitalism.

Solution:

• Socialism:
  • Socialism is the principle that emphasises on the control of masses or public over a property or a natural resource.
  • As per socialism it is believed that products that are made by people are social products and people who contributed in the production holds their respective share in the product.
• Capitalism:
  • Capitalism emphasises on private ownership of a means of production where the owner has the freedom to select the product.
  • The owner also has complete control over the amount of share one will receive.