Not all economic systems are the same. The economic system of the USA differs greatly from the system of Cuba. The American system is based on private enterprise with private ownership of the means of production, while the Cuban system is communistic and is based upon the principles of Karl Marx, the 19th century political economist. The economic ideologies of these two nations contrast very strongly.Britain is similar to the USA. It has an economic system based on private enterprise and private supply of capital, which can be defined as surplus income available for investment in new business activities. Property in both the US and Britain can be owned by individual citizens and these citizens exercise considerable economic freedom of choice. They can choose what they want to do and how they want to earn their living, but are not of course entirely free to do as they wish. They must obey the law. Otherwise, however, they can use their time, money and effort as they wish.



Say whether these statements are true or false, and if they are false, say why.

1. The economic system of the United States and Cuba are the same.

2. In the United States the means of production are privatively owned.

3. Karl Marx was an eighteenth century economic thinker.

4. The British system is based on the principles of Karl Marx.

5. Because Britain has a system of private enterprise, we can say that its economy is similar to the American economy.

6. Capital is essentially surplus income used for new business activities.

7. Individual citizens in Britain and the United States have complete economic freedom.

8. British citizens can choose what they want to do as long as they obey the law.​