Describe the differences between capitalism and socialism
Capitalism is characterized by private ownership over the means of production (the factors of production are privately owned) and economic activity is coordinated through a system of markets and prices (consumers and firms in the market make economic choices). Socialism in characterized by public or collective ownership over the means of production and economic activity is coordinated by the government.
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Other things equal, if foreign holdings of U.S. dollars decrease,
A) the balance on the U.S. current account will decrease. B) the balance on the U.S. financial account will decrease. C) the balance on the U.S. capital account will decrease. D) the U.S. balance of payments will decrease.
Tools used by economists include
A. historical study. B. mathematical reasoning. C. statistical inference. D. All of these responses are correct.