The economics of capitalism developed out of the interactions of the commodities, money, labour power, means of production, production.Individuals engage in the economy as consumers, labourers, and investors, providing both money and labour power.Business firms decide what to produce and where this production should occur. They also purchase capital goods to convert them into consumer goods. Businesses try to influence consumer purchase decisions throughmarketing as well as the creation of new and improved products.The market is a term used by economists to describe a central exchange through which people are able to buy and sell goods and services.
Socialism refers to various theories of economic organization advocating public or direct worker ownership and administration of the means of production and allocation of resources, and a society characterized by equal access to resources for all individuals with a method of compensation based on the amount of labor expended.
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