DEFINING ECONOMIC SYSTEMS (from Kendall)Capitalism: An economic system characterized by private ownership of the means of production, from which personal profits can be derived through market competition and without government intervention.Socialism: An economic system characterized by public ownership of the means of production, the pursuit of collective goals, and centralizeddecision making.Democratic Socialism: A type of Mixed Economy in which private ownership of some of the means of production is combined with governmental distribution of some essential goods and services and free elections. Kendall Examples: Sweden, Great Britain, FranceAlso: Canada, Australia, other European nationsStudy: Americans Vastly Underestimate Wealth InequalityStudy Authors: Dan Ariely, Duke UniversityMichael Norton, Harvard Business SchoolYear: 2010Finding 1: - Americans believed that the richest 20% should own only 32% of the wealth- Americans thought that the richest 20% of the country controlled 59% of the wealth- In reality, the richest 20% of Americans control 84% of America’s wealthAriely and Norton Study, Cont.Finding 2: When presented with unlabeled pie charts representing the wealth distributions of the U.S. (where the richest 20% control 84% of the wealth) and Sweden (where the richest 20% only control 36% of the wealth),92% of Americans said they would prefer to live in SwedenDEFINITIONSSocial Stratification: the hierarchical arrangement of large social groups on the basis of their control over basicresourcesClass System: a system of social inequality based on the ownership and control of resources and on the type of work people