|
|
PRICE: An asset or item voluntarily exchanged in a market transaction for another asset or item. This item or asset is usually, but not necessarily, money. A barter transaction occurs if money is NOT one of the assets or items exchanged. In a standard market diagram, price is displayed on the vertical axis. Price takes on several specific roles in the functioning of a market. On the demand side, the price reflects the willingness and ability of the buyers to purchase a product which is based on the satisfaction received (the demand price). On the supply side, the price reflects the opportunity cost of production (the supply price). Also the variable in the marketing mix where the organization establishes product positioning objectives. These could be low end to capture more market share or high end to differentiate based on perceived product quality and scarcity. Pricing is based on market research to establish what customer wants and needs are in exchange for valued compensation, typically money or bartering.
Visit the GLOSS*arama
|
|
|
|
                           SOCIALISM: In theory, an economy, or economic system, that is a transition between capitalism and communism and is based on: (1) government, rather than individual, ownership of resources, (2) worker control of the government, such that workers, rather than capitalist, control capital and other productive resources, (3) income allocated on need rather than on resource ownership or contribution to production. In practice, socialism is a type of economy based on--(1) government ownership and control of the most crucial resources, like those for energy production, communication, transportation, and health care and (2) a heavy dose of central planning by government. Although socialism represents the theoretical transition from capitalism to communism, the primary goals of modern real world socialism are: (1) to correct the inefficiencies of market failures, (2) to obtain more equal wealth and income distributions, and (3) to equalize economic opportunities. To accomplish these goals, government exerts a significant amount of government control, while less than communism, more than capitalism.Perhaps more so than other economic systems, socialism comes in many different varieties. Some nations practice a form of socialism that comes very close to communism, with extensive government control. Socialism found in other nations has a distinctive capitalistic flavor, with a great deal of market activity. Government Ownership and ControlA distinguishing characteristic of socialism is government ownership and control over key industries and resources. Government ownership and control generally begins with transportation, energy, and communication. Socialist governments generally view these industries and their associated resources as the ones most likely abused by private ownership.More active socialist governments tend to exert greater control over other industries, such as health care, heavy manufacturing (such as steel production), and agricultural production. In the extreme, everything is owned and controlled by government, resulting in communism. Central PlanningGovernment ownership of resources and control of industries under socialism necessitates control of allocation decisions. This is often accomplished through central planning. While less extensive than found in communism, detailed plans are needed to allocate resources in the absence of market exchanges. And while such planning generally lacks the efficiency incentives found in markets, it can improve the efficiency if the markets would otherwise fall victim to failures.For example, transportation systems are usually owned and controlled by governments under socialism due to the possible market failure of market control, especially the emergence of natural monopoly. A Mixed EconomySocialism occupies a large section of the spectrum of economic systems, bounded by a pure market economy on one end and a pure command economy on the other. Socialism tends to lay closer to the pure command economy of the spectrum, but it can also edge toward the pure market economy side dominated by capitalism.Socialism, like all other real world economic systems, is thus a mixed economy. Allocation decisions are undertaken by both governments and markets. Some socialistic nations rely more on governments and less on markets, while others rely a little more on markets and a little less on governments. But all rely on both to some degree. The Politics of SocialismThe concept of socialism dates back almost to the beginnings of philosophical thought into the human prospect. Socialistic principles, for example, can be found in the works of Plato and the New Testament of the Christian Bible.Over the centuries socialism has been as closely aligned with political thinking as with economic analysis. It has formed the foundation of numerous political parties and helped inspire scores of revolutions. On the spectrum of political thinking, socialism is more likely embraced by liberals and the political left than by conservatives and the political right.
Recommended Citation:SOCIALISM, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: July 9, 2025].
Check Out These Related Terms... | | | | | | |
Or For A Little Background... | | | | | |
And For Further Study... | | | | | | | | | | | |
Search Again?
Back to the WEB*pedia
|
|
|
BROWN PRAGMATOX
[What's This?]
Today, you are likely to spend a great deal of time at a dollar discount store trying to buy either a birthday greeting card for your father or a T-shirt commemorating the first day of spring. Be on the lookout for spoiled cheese hiding under your bed hatching conspiracies against humanity.
Your Complete Scope
This isn't me! What am I?
|
|
|
Lewis Carroll, the author of Alice in Wonderland, was the pseudonym of Charles Dodgson, an accomplished mathematician and economist.
|
|
|
"All labor that uplifts humanity has dignity and importance and should be undertaken with painstaking excellence. " -- Martin Luther King Jr., civil rights leader
|
|
VC
Variable Cost
|
|
|
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback
|
|
