Schools of economic thought

Economics is a subject that studies how people, businesses, and governments make decisions about how to use limited resources such as money and time. There are different schools of economic thought which means different groups of people have different ideas about how to make decisions about money and resources.

One school of economic thought is called Capitalism and this is when people own their own businesses and the businesses compete against each other to make money for themselves. The government usually does not interfere much with how businesses decide to price their products or how much they produce.

Another school of economic thought is called Socialism and this is when the government interferes much more with business decisions, often setting prices and production quotas. The idea is that this will lead to more fairness and lower prices for consumers.

Both Capitalism and Socialism have their advantages and disadvantages, and there are many other economic theories, such as Libertarianism and Keynesianism, that provide different perspectives on how to best use limited resources in the most efficient way.