Question

Write a paragraph comparing the ideas of capitalism and socialism. How were they similar or different? 

(OR) 

Distinguish between socialism and capitalism. 

(OR)

Compare and contrast between Socialism and Capitalism.

(OR)

What are the differences between captalism and socialism?

Answer 1

Capitalism	Socialism
1. Capitalism is based on private ownership of means of production.	1. Undersocialism the means of production are under the control of the government.
2. Supply and demand forces determine the prices.	2. There will be centralized planning mechanism.
3. The objective of production is profit maximisation.	3. The objective of production is welfare of the state and people.
4. Concentration of power or wealth will be in few hands.	4. Socialism opposes concentration of power or wealth.
5. The resources are controlled by the capitalists.	5. Social control of resources is seen here.
6. There is no individual freedom or equality of opportunities.	6. The individual freedom and equality of opportunities are given high priority.
7. Eg : West Europe and North America.	7. Eg : Eastern European countries and China.