00:01
Which of the following indicates an economy is capitalist rather than socialist? so first, what is the basic difference between a capitalist and socialist economy? so the question is, who owns the resources? who owns the capital? in a capitalist economy, individuals own capital.
00:25
So if you have the money, you could purchase a factory, you could employ people to work in the factory, and sell the goods that they make.
00:31
In a socialist economy, the workers are supposed to own the capital.
00:38
Typically, that's via the government in real world socialist economies.
00:47
So the government owns things, and the workers should see the dividends.
00:53
So if we have a look at the options here, which would you expect to see in a capitalist economy? start with a.
00:59
No industries in which one business has a monopoly.
01:02
So this would not be the case.
01:04
You could have a capitalist economy that has a single business having a monopoly.
01:11
A lot of the time there's regulation to try to get rid of that, but capitalism is very much about the free market.
01:18
And if a company is successful enough, they can drive out all competition.
01:22
Why not? that would be an extreme on the capitalism side.
01:26
Whereas socialist economy would not like that.
01:31
Essential services administered by the government, that's definitely.
01:34
On the kind of socialism side of things...