Chapter 2, Problem 10QFR

Why fraud and many illegal things are related to capitalist system?

What are the main differences between a capitalist (market-based) and socialist (command) economic system?

Marx and Engels ([1848] 1967) argued that market-based capitalism was the most dynamic force in the world. Originating in Western Europe, this economic system was based on capital accumulation, the spread of markets, and the exploitation of labor. This latter idea was based on the notion that labor is the source of all value in the production process, but labor is only recompensed part of that value, in the form of wages; the rest goes to the owner of the capital as profit Under the capitalist mode of production, profit comes from the exploitation of human labor. Under the capitalist mode of production, profit comes from the exploitation of human labor. However, the accumulation of capital and new technology displaces labor. Joseph A. Schumpeter (1939, 1942, 1991) argued that growth was supply driven by the factors of production, with entrepreneurial innovation the most important of these. He believed in a “raw instinct” that drove entrepreneurs. He saw development as being driven by…

Describe some of the basic components of the evolution of capitalism?   According to Investopedia (2017), capitalism grew fromEuropean feudalism in which workers were controlled by feudallords. The system was mainly agricultural in nature, and aseconomies became more urbanized, child labor and long workinghours were common. Mercantilism and colonialism expandedtrade among countries, with periods characterized by wars,nationalism, exploration, and exploitation.Henri See (1928) also believed that capitalism was part of aneconomic revolution in Europe, which first appeared in the formof commercial and financial capitalism. The capitalistic businesses,which manifested themselves in the nineteenth century, wentthrough some transformation with labor businesses and relationsbetween employer and employee.Historically, capitalism was seen as an exploitation of laborin the wealth-creation process and in the reproduction of socialrelations. According to Shaikh (1990), the manner in whichsociety…

How is the problem of what and how much to produce resolved in the capitalist system?

Describe the types of economic systems. In less than 100 words only.

Both Private Property and Limited Government are integral to a purely Capitalistic economic system. The USA is not a purely Capitalistic economic system. Why

Capitalism has accomplished many things, but I feel that the most important thing is the bringing together of the societies together to benefit one another. A key driver of capitalism is competition. The book talks about how competition makes individual pursuit of self-interest socially beneficial. We are constantly trying to lower our manufacturing costs to ensure our prices are lower than our competitors and so we get more business. The competition factor keeps businesses in the race to become better and better year after year. Its prospects for the future are bringing farther away markets closer together through the power of the internet. We see this a lot with Ecommerce now. For example, dropshipping allows companies to reach out to manufacturers all over the world to produce goods for them at the lowest cost. 100 years ago, you would not have been able to do such a thing. This brings a sense of one large global market much more likely of an outcome if we continue to defy geography…

Question 1. What makes Islamic economic system different from socialism and capitalism?