Question

Briefly explain why examples of pure socialism and pure capitalism tend to be more theoretical in nature and less likely to be found in reality.

Answer 1

Pure socialism means that everything under a state comes under government. Or government has control over everything. This is not possible because it will eat up the opportunity for entrepreneurs to flourish and that economy won't be innovative in general.

On the other hand, pure capitalism means that in a state nothing is intervened by the government. This isn't possible because it will eat up all the possibilities of social welfare and the whole economy will be profit driven with a lot of unfair prices and exploitation.