Question

Describe the differences or dissimilarities between Capitalism and Socialism under the following heading:

Market Economy versus Planned Economy

Answer 1

The spirit of capitalism is the Market Economy. The economic life is organised according to the forces of demand and supply. The capitalists produce even those goods which are of no utility for the society. It leads to the wastage of valuable resources. The Socialists, on the other hand, placed too much emphasis on a planned economy.