This document provides an overview of different economic systems including capitalism, socialism, and communism. It defines capitalism as a system where private individuals own means of production and seek profits. Socialism is described as collective ownership of production and distribution to meet needs rather than maximize profits. Communism is defined as communal ownership with no social classes based on productive ability. Examples of communist countries and leaders are listed. The informal economy is also summarized as unreported money, goods, or services transfers to avoid taxes and regulations.

1. INSTITUTIONS
ECONOMIC

2. ECONOMIC SYSTEMS

3. CAPITALISM

4. CAPITALISM
an economic system in which the means
of production are held largely in private
hands and the main incentive for
economic activity is the accumulation of
profits.

5. STAGES
Industrial
Revolution
Laissez-faire
(let them
do)
Modern day
capitalism

6. MAIN FEATURES
Private ownership
Maximization of profits
Government regulation of economic
relations
Tolerates monopolistic

7. SOCIOLOGICAL IMAGINATION
Which aspects of capitalism do you
personally appreciate?
Which do you find worrisome?

8. SOCIALISM

9. SOCIALISM
the means of production and distribution
in a society are collectively rather than
privately owned.
basic objective is to meet people’s needs
rather than to maximize profits

10. SOCIALISM
In theory, the wealth of the people as a
collectivity is used to provide health care,
housing, education, and
other key services to each individual and
family

11. COMMUNISM

12. COMMUNISM
an economic system under which all
property is communally owned and no
social distinctions are made on the basis
of people’s ability to produce

13. CPC COUNTRIES
 Soviet Union, the People’s Republic of China, Vietnam,
Cuba, and nations in Eastern Europe
 Communist Leaders:
Lenin
Joseph
Stalin
Fidel Castro
Mao
Zedong
Ho Chi Minh
Ernesto
“Che”
Guevarra

14. INFORMAL ECONOMY

15. INFORMAL ECONOMY
 Transfers of money, goods, or services take place
but are not reported to the government.
 Participants in this type of economy avoid taxes
and government regulation
 Functionalists contend that bureaucratic
regulations sometimes contribute to the rise of an
informal, or underground, economy.

16. Year: 2002
Source: Forbes and
World Bank

17. FIVE LARGEST ECONOMIES

18. END