Question

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

Profit Maximisation versus Social Cohesion

Answer 1

Profit maximisation is the main motive for an industrialist. Under a Socialist economy even such things shall be produced, for the benefit of the poor and the needy, whose production costs more and yields lesser gains or no gains at all. The State, through Fair Price Shops, sells goods even at a loss, e., a) a price which is less than it costs to produce some of the goods.