Revision: Economic
System case study
1.2.1. I believe that the avocado plantation is considered as capitalistic because
it is owned by an international avocado pear company unlike in a socialistic
economy. The income/wages are always affected by the current losses or
profits by the business meaning it is common for the businesses to ‘let go of
the employees’ or in a normal term ‘they get fired’.
1.2.2. I believe that the milk farm is considered the socialistic in these two
because the farm is owned by the government and controlled by the
government, including the wages/income. In a government run working
environment, the wages/income is the same for all employees and sometimes
the family of the worker have some advantages like family can live with you
and the government gives free education/medical treatment. In this
environment it is easy to live with fixed working hours.
1.2.3. The socialistic (☭Communist☭) is the best providing economy
because in this economy all the employees are treated equally and everyone
has the same qualifications. Here the income/wages are the same and can’t
change if there is a loss. Employees can also get some government advantages
like free housing or education for children.
1.2.4. Most likely drought/floods or just a bad harvest. It is possible that
competition was immense.
1.2.5. The economic GDP probably had a little bit of a downscale in the charts
but this expected in a capitalistic society where nothing is to be sure off. If the
plantation was a major GDP counter-part than the economy had a devastating
loss or if it was a minor company than the economy has barely changed.