Answer:
there are different aims of the economic systems
Step-by-step explanation:
1. The issue of equity is not of concern to capitalism. Inequality is claimed to be important in fostering innovation and economic growth. Socialism concerns the division of wealth between the rich and the poor. This is to ensure that all have equal opportunities and equal results in certain forms of socialism.
2. Capitalism-Private companies will be owned by private individuals / companies, Socialism-the main means of production will be controlled and owned by the state. The government, but workers ' cooperatives, are not owners in certain socialistic models.
3. Capitalism Efficiency. Profit incentives are argued to encourage companies to become more efficient, to decrease costs and to innovate new products that people want. If companies do not keep up, they are gone. This company failure however allows resources to flow into new economic areas which are more efficient. Something called socialism "creative destruction." State ownership is often inefficiency because there is no real incentive for staff and managers to cut costs. "They pretend to pay us," was a joke under soviet communism. We're pretending to be working.
4. Price controls Market forces determine prices. Organizations with monopoly power will take advantage and charge much higher prices.
The government generally sets prices in a state-managed economy, which can lead to scarcity and surpluses.