Capitalism:
Capitalism is an economic system based on the private ownership of capital goods and the means of production, with the creation of goods and services for profit.
Characteristics of Capitalism:
• Ownership belongs to “YOU”
• Freedom of own economic growth
• Suitable environment for business
• Profit in your “Pocket”
• Reward based system
• Creative and innovative environment

Advantages and Disadvantages of Capitalism:
Advantages of Capitalism:
1. Cost of production is reduced due to efficient control.
2. Production process is efficiently controlled.
3. Improved quality of goods.
4. Different varieties of product.
5. Consumer’s choice given full priority.

Disadvantages of Capitalism:
1. Inequality in the distribution of national wealth.
2. Talent wastes
3. Level of employment fluctuations
4. Class conflicts
5. Heavy expenses on publicity result into increase in cost and price of the commodity.

Communism:
Communism refers to a political system that stresses the primacy of collective goals over individual goals.
Characteristics of Communism:
• Needs of the society are viewed as a whole than individual freedom.
• State-owned enterprises are managed to benefit society as a whole, rather than individual capitalists. For Example Cuba, Vietnam, China (market based economic reforms).
• In communism personal belongings, like shoe, watches and clothes are allowed to be owned by individuals and houses are owned by the states.

Advantages and Disadvantages of Communism:
Advantages of Communism:
1. Following are the merits of communism
2. Full employment of manpower
3. Careful life
4. Equitable distribution of wealth
5. Economic growth and rapid development

Disadvantages of Communism:
1. No sympathy for workers. They are treated as machines
2. No time for personal space.
3. Central state authority holds all means of production.
4. Materialistic approaches to all problems of life.

Socialism:
Socialism as the name suggests is something which is for the benefit of all the people rather than small group of individuals. Under socialism economic system it is the government which possess majority of the factors of production and rest lies with private sector or capitalist.
Characteristics of Socialism:
• Absence of competition
• Equal opportunities to all
• In Socialism, means of production are owned by the state
• No economic freedom to the people
• Economic related activities are planned by the central planning authority.

Advantages and Disadvantages of Socialism:
Advantages of Socialism:
1. Under socialism since it is the government which owns majority of factors of production the chances of consumer being charged more is reduced as government will add minimum margin of profit on the produce unlike private companies.
2. Chances of monopoly by few producers or people is next to nil under this system as government holds majority of resources, people are not in position to take control of resources and created monopoly like situation.
3. The gap between poor and rich is there but it is not that gigantic as in the case of capitalist economic system.
4. In environments with plentiful resources, socialism provides all members with their survival needs, creating a stable social environment.
5. Members that cannot participate economically - due to disabilities, age, or periods of poor health - can still impart wisdom, emotional support and continuity of experience to the system.
6. Freedom from work provides opportunity for some societal members to explore non-economically-productive pursuits, such as pure science, math and non-popular arts.

Disadvantages of Socialism:
1. Since there is no culling and no economic advantage to working harder, socialistic systems provide no inherent incentive to participate. This makes socialism internally unstable.
2. Due to a lack of incentives, socialistic systems tend not to be competitive, making them externally unstable.
3. In times of plenty, immigrants are drawn to the free resources offered by socialistic systems, while potentially adding nothing economically productive.
4. In times of scarcity, resentment of non-economically-productive members of society increases, causing a destabilizing effect on the society and economy.
5. Imagine if in the race if there is no competition than you would not run with full speed but rather slowly in the same way under socialism economic system there is lack of competition which hampers the growth of the country.
6. There is no incentive for people to develop entrepreneurship skill as they know it’s of no use, and we all know that entrepreneurs are essential if country wants to grow and compete with other countries of the world.
7. It also suffers from delay in decision making on the part of government and bureaucratic attitude of government employees.