Economic Questions Flipbook - Soap - Justin Gandhi

How Soap is Produced in Various Economic Systems By Justin Gandhi

Free Enterprise What to Produce; Decided by Demand How to Produce; Decided by Corporations For Whom to Produce; Consumers with money Similarities; -With Socialism; Produces high-quality goods -W/ith Communism; Faith is put in few individuals Differences; -With Socialism; Government has no interference -With Communism; Is not intended to create a classless society In this economy, soap is produced by companies and then sold to consumers to make a profit, whichever companies sell the best soap at the lowest prices gets the most sales.

Socialism What to produce; Decided by Common People How to produce; Decided by Common People For whom to produce; Decided by Common People Similarities; -With Free Market; Individual ownership exists -With Communism; Government has a role to play Differences; -With Free Market; Government levies taxes to pay for basic services -With Communism; Government has to listen to the will of the people In this economy, soap is produced by the government collecting taxes and then paying businesses to make soap, as well as making standard government soap

Communism What to produce; Decided by Government How to produce; Decided by Government For whom to produce; Decided by Government Similarities; -With Free Market; Puts power in the hands of a few -With Socialism; The government is involved Differences; -With all; Is often abused by those in power -With all; Complete lack of competition leads to poorer quality goods In this economy, the government produces soap that is often low quality, and the high-ranking officials most likely get special soap of a much higher quality.