Loading...

Which statement abo… - QuestionCove
OpenStudy (anonymous):

Which statement about capitalist and communist economic systems is correct? A. In a communist system, people can work for themselves or a privately owned business. B. In a capitalist system, the government decides which goods to produce and sets the price. C. In a communist system, individuals and corporations own businesses and property. D. In a capitalist system, business owners who work hard can increase their profits.

3 years ago
OpenStudy (anonymous):

@Xmoses1

3 years ago
OpenStudy (xmoses1):

I thank that it is C. Not 100% sure though

3 years ago
OpenStudy (kendricklamar2014):

Capitalism is defined as: An economic system in which the means of production and distribution are privately or corporately owned and development is proportionate to the accumulation and reinvestment of profits gained in a free market. In simpler terms, the main feature of a capitalist economy is that there are private entites(those which are not controlled by the state(government)). these private entities involve in economic activity with a self interest( i.e. earn profit). the price, supply and such things are decieded by the market ( i.e. demand and supply).There is no or little government intervention. Examples of this type of economic system are USA, UK, Japan, Germany, Sweden etc A socialist economy is an economy in which prime entity is the state/government. Market demand and supply are not a concern here. Rather the govt decides how much of what must be produced and where it must be distributed and what price. socialism is intimately connected with communism. we can say that while communism is the political aspect socialism is the economic aspect of the same thing. The communist principle is that there should be classless society in which all are equal. no one is bigger, better or richer. The state will control the economic activities and produce what is needed.The main attention of the government is the welfare of the people and not making profit. This economic system was very successfull in the soviet union before it crumbled. This economic system is still prevalent in countries like china, vietnam, cuba. There are many pros and cons to both these economic systems. Judging by current trends, the socialist economy is becoming less popular. Some countries like india, which used to follow a socialist economic setup have now turned into a mixed economy. While there is a free market, the govt intervention in certain areas is also seen. Even though China is a communist country, it would be safe to say that even they use an element of capitalism in their economy.

3 years ago
OpenStudy (anonymous):

thank you both ;)

3 years ago
OpenStudy (xmoses1):

O.O

3 years ago
OpenStudy (xmoses1):

You are welcome :)

3 years ago
OpenStudy (kendricklamar2014):

No Problem :0

3 years ago
Similar Questions: