With reference to Capitalism and Socialism, state the following:

(a) Difference between Capitalism and Socialism in terms of control over means of production and profit.

(b) Two key proponents of Capitalism and Socialism. Give examples of two countries where each economic system is prevalent.

(c) What according to you is better of the two economic systems? Give reasons to support your answer.

(a) In Capitalism, the means of production like labour, raw material, tools and machines are owned by private individuals or groups of them for profit whereas in Socialism, the government owns and controls the means of production (as factories) and distribution of goods.

(b) The two key proponents of Capitalism were Richard Cantillon and Adam Smith while the two key proponents of Socialism were Karl Marx and Fredrick Engels.
Two examples of countries where Capitalism is prevalent are the USA and the UK while two examples of countries where Socialism is prevalent are China and Denmark.

(c) Capitalism is better of the two economic systems. It believes in free market and is opposed to government intervention. Many Capitalist countries like the USA, the UK, Canada and Australia; are developed and successful. To prevent the drawbacks of Capitalism, the government should enforce laws in favour of labourers and working class to prevent their exploitation. Government should enforce laws of fair minimum wages and reasonable working hours. Labour laws relating to safety of labourers and protection against exploitation should be enforced to check the evil effects of the Capitalist economic system.