Free market economy (Capitalism)
PROFITS = $5,000
Your company makes hovercrafts. Right now your company is doing well, you are the 3rd best-selling
hovercraft seller in the country. The government does not interfere in your business in any way. It does not take
taxes from you, it does not regulate your business practices, and it sets no price restrictions on your product.
You can do anything you want in order to make more money.
Where are you in the spectrum of Capitalism to Communism?
Pure Capitalism _____________________Socialism_____________________Pure Communism
How much money do you as a business owner take away (after taxes, if applicable)?
What are the possibilities for economic growth in your business? Explain.
What are the good things about your situation?
What are the bad things about your situation?
How do you think your workers feel about the situation? Why?
Quasi-free market economy (Capitalism/Socialism)
PROFITS = $5,000 (before taxes)
Your company makes beanbag chairs. Right now your company is doing ok. You are in the middle of the
competition, not the best seller, not the worst. The government has been taking 15% of your income for taxes,
but they provide you with infrastructure (roads, power lines, etc.), and they take your interest into consideration
when it makes political decisions. They require that you do not charge unreasonable prices for your product,
and that you treat your workers fairly.
Where are you in the spectrum of Capitalism to Communism?
Pure Capitalism _____________________Socialism_____________________Pure Communism
How much money do you as a business owner take away (after taxes, if applicable)?
What are the possibilities for economic growth in your business? Explain.
What are the good things about your situation?
What are the bad things about your situation?
How do you think your workers feel about the situation? Why?
Highly regulated economy (Capitalism/Socialism)
PROFITS = $5,000 (before taxes)
Your company makes chocolate covered pretzels. Right now your company is doing fantastic. You are the #1
seller of chocolate covered pretzels in the country. The government takes 60% of your income for taxes, but
they provide free health care and prescription drugs for everyone in the country, free pre-schools and day care,
free housing and food for the homeless, and help to the poor. The government requires that you do not charge
unreasonable prices for your product, that you treat your workers fairly, that you give each worker a month of
paid vacation each year, you provide 6 months of paid maternity/paternity leave for all workers, and you never
require workers to work overtime.
Where are you in the spectrum of Capitalism to Communism?
Pure Capitalism _____________________Socialism_____________________Pure Communism
How much money do you as a business owner take away (after taxes, if applicable)?
What are the possibilities for economic growth in your business? Explain.
What are the good things about your situation?
What are the bad things about your situation?
How do you think your workers feel about the situation? Why?
Socialist economy
PROFITS = $1,000 (this is what is left for you after redistribution)
The company you manage makes sparkly princess shoes. Right now the company is struggling to survive. The
workers in the factory are all part owners in the company and they say how the company should be run. The
government also helps to regulate the company. While workers are paid wages, the government redistributes
any additional income equally among the people. All services are free to all the people.
Where are you in the spectrum of Capitalism to Communism?
Pure Capitalism _____________________Socialism_____________________Pure Communism
How much money do you as a business owner take away (after taxes, if applicable)?
What are the possibilities for economic growth in your business? Explain.
What are the good things about your situation?
What are the bad things about your situation?
How do you think your workers feel about the situation? Why?
Command economy (Communism)
PROFITS = $550 (this is what is given to you by the government)
The company you work for makes propaganda posters and is owned by the government. All of the profits are
shared equally among the workers, regardless of position (ie: managers earn the same amount as the janitors).
The government sets all prices, working conditions, business decisions, and provides all services and necessities
for the people. There is no private property, everything is owned in common (and is managed by the
government).
Where are you in the spectrum of Capitalism to Communism?
Pure Capitalism _____________________Socialism_____________________Pure Communism
How much money do you as a business owner take away (after taxes, if applicable)?
What are the possibilities for economic growth in your business? Explain.
What are the good things about your situation?
What are the bad things about your situation?
How do you think your workers feel about the situation? Why?