Economic Elements
Economics |
---|
Economies by country |
General categories |
Microeconomics · Macroeconomics History of economic thought Methodology · Heterodox approaches |
Technical methods |
Mathematical · Econometrics Experimental · National accounting |
Fields and subfields |
Behavioral · Cultural · Evolutionary Growth · Development · History International · Economic systems Monetary and Financial economics Public and Welfare economics Health · Education · Welfare Population · Labour · Personnel Managerial · Computational Business · Information · Game theory Industrial organization · Law Agricultural · Natural resource Environmental · Ecological Urban · Rural · Regional · Geography |
Lists |
Economists · Journals · Publications Categories · Index · Outline |
The economy: concept and history |
Business and economics portal |
There are a number of different elements in the capitalist socio-economic system.
Capitalism is defined as a social and economic system where capital assets are mainly owned and controlled by private persons, where labor is purchased for money wages, capital gains accrue to private owners, and the price mechanism is utilized to allocate capital goods between uses. The extent to which the price mechanism is used, the degree of competitiveness and government intervention in markets distinguish exact forms of capitalism.
There are different variations of capitalism which have different relationships to markets and the state. In free-market and Laissez-faire forms of capitalism, markets are utilized most extensively with minimal or no regulation over the pricing mechanism. In interventionist and mixed economies, markets continue to play a dominant role but are regulated to some extent by government in order to correct market failures and to promote social welfare. In state capitalist systems, markets are relied upon the least, with the state relying heavily on state-owned enterprises or indirect economic planning to accumulate capital.
Capitalism and capitalist economics is generally considered to be the opposite of socialism, which contrasts with all forms of capitalism in the following ways: social ownership of the means of production, where returns on the means of production accrue to society at large, and goods and services are produced directly for their utility (as opposed to being produced by profit-seeking businesses).
Read more about this topic: Capitalism
Famous quotes containing the words economic and/or elements:
“Weapons are an important factor in war, but not the decisive factor; it is people, not things, that are decisive. The contest of strength is not only a contest of military and economic power, but also a contest of human power and morale. Military and economic power is necessarily wielded by people.”
—Mao Zedong (18931976)
“A party of order or stability, and a party of progress or reform, are both necessary elements of a healthy state of political life.”
—John Stuart Mill (18061873)