answer question 1 and 2 since they are part of the same question

market T be left vulnerable to econ The citizens of Richtany believe that o democratic socialism will work best on the moon. Although most factors of production should be left in private hands, the moon settlement should own some The Prom of its major industries and use taxes to fund social programs that protect all of its citizens. We have both Communism a moral and an economic obligation to provide social programs such as health care, education, and retire- The people of Ziber believe that ment pensions to the citizens of this new international authoritarian socialism, or commu- settlement. I hope that when making your decision you nism, is a strong and fair economic sys- will not ignore the value of moderate government tem. We hope that the new moon control of the economy. settlement will model its economic sys- tem on that of this country and the Sincerely, economic theories of Karl Marx. Eco- Judit Steger nomic factors determine social and political change throughout the world. In many countries, the proletariat or working class, is oppressed and exploited by those who own the factors WHAT DO YOU THINK? of production. By owning the factors of production in Ziber, workers have cre 1. Who owns the factors of production in ated a classless society. this system (right)? We believe that the governme 2. What are the trade-offs in this system? should own nearly all the industries the settlement and should closely re 3. How would this system affect an individ ual's budget, economic choices, and eco- late any small private businesses. nomic goals? government can then use these enues to finance social programs 4. What are the incentives to produce in this system? as low-cost public housing, free h care, and education and retire pensions. 46 . UNIT 1 ECONOMICS LAB 47