TEKS 113.31(d)(4), Social Studies (Economics)
Subject: Economics – High School
TEKS 113.31(d)(4)
Summary of TEKS 113.31(d)(4)
TEKS 113.31(d)(4) explains how free enterprise, socialism, and communism organize resources differently. Free enterprise emphasizes individual freedom and competition, socialism balances government and private control, and communism focuses on equality through total government control. Philosophers like Adam Smith and Karl Marx shaped these systems and their applications.
Key Concepts of TEKS 113.31(d)(4)
- Free Enterprise: Encourages private ownership, competition, and limited government.
- Socialism: Combines government ownership of key industries with private business regulation.
- Communism: Relies on complete government control of resources and production.
- Philosophers: Ideas from Smith, Marx, and Keynes influenced these systems.
Section 1: What Is Free Enterprise?
TEKS 113.31(d)(4)(A)
Explanation: Free enterprise, also called capitalism, is an economic system where individuals and businesses control resources. In this system:
- People have property rights and can own and control land, businesses, and products.
- Businesses compete to provide the best goods and services at the best prices.
- The government has a limited role, mostly to enforce laws and protect property.
Example of TEKS 113.31(d)(4)(A): In the United States, businesses like Apple or Walmart decide what to sell and how to operate. Consumers choose what to buy based on their preferences.
Key Idea: Free enterprise gives people freedom to make economic choices and encourages innovation through competition.
Section 2: What Is Socialism?
TEKS 113.31(d)(4)(A)
Explanation: Socialism is an economic system where the government plays a large role in controlling resources and industries. In this system:
- The government often owns major industries, like healthcare or transportation.
- Wealth is redistributed through taxes to reduce inequality and provide public services.
- Private businesses can still exist but are regulated.
Example of TEKS 113.31(d)(4)(A): In countries like Sweden, the government provides free healthcare and education, funded by higher taxes. Some businesses are privately owned, but the government ensures they follow strict rules.
Key Idea: Socialism aims to reduce inequality by having the government manage resources and provide services for everyone.ces and meet people’s needs.
Section 3: What Is Communism?
TEKS 113.31(d)(4)(A)
Explanation: Communism is an economic system where the government owns all resources and controls all production. In this system:
- There is no private property; the government owns everything.
- Everyone is supposed to share equally in the wealth.
- The government decides what to produce, how to produce it, and for whom.
Example of TEKS 113.31(d)(4)(A): In communist countries like North Korea, the government controls all industries, such as farming, factories, and stores. People are assigned jobs, and the government decides what goods and services are available.
Key Idea: Communism focuses on equality but gives the government total control over resources and production.s we use every day.
Section 4: How Do These Systems Compare?
TEKS 113.31(d)(4)(B)
Explanation: Free enterprise, socialism, and communism have unique characteristics. Here’s how they compare:
| Feature | Free Enterprise | Socialism | Communism |
|---|---|---|---|
| Property Rights | Private ownership | Mixed (private + gov.) | No private ownership |
| Government Role | Limited | Large | Total control |
| Competition | High | Regulated | None |
| Wealth Distribution | Market-driven | Redistribution | Equal sharing |
Example of TEKS 113.31(d)(4)(B): Free enterprise values freedom, socialism balances government and private roles, and communism focuses on government control.
Key Idea: Each system has strengths and weaknesses, depending on how resources are managed and distributed.
Section 5: Economic Philosophers and Their Impact
TEKS 113.31(d)(4)(C)
Explanation: Economic systems are based on the ideas of key philosophers:
- Adam Smith: Known as the “father of capitalism,” he believed free markets work best when individuals pursue their self-interest.
- Karl Marx: Criticized capitalism and developed the ideas behind communism, arguing for a classless society.
- John Maynard Keynes: Advocated for a balance between free markets and government intervention, influencing modern socialism.
Example of TEKS 113.31(d)(4)(C): Adam Smith’s ideas influenced the U.S. free enterprise system, while Karl Marx’s ideas inspired communist countries like the Soviet Union.
Key Idea: Philosophers shaped how societies think about economics and government roles in managing resources.