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irina [24]
3 years ago
7

explain the difference between capitalism and communism. what role does the government play in each type of economic system?​

History
1 answer:
lesya692 [45]3 years ago
3 0

Answer:

In communist regimes such as that of the former Soviet Union, the government controls the whole economy and takes all the main economic decisions. It is a system of command, planned ,centralized economy. The government decides the prices, assigns production goals to companies and economic sectors, allocate resources. The dominant form of property is the state property.

In a capitalist economy, the government leads the economic policy and development in order to create a good business environment. However, it  lets companies in an environment of free competition to make decisions on prices, allocating resources and inputs and picking outcomes. Rational economic decisions are determined by the laws of supply and demand. The dominant form of property is private property.

Explanation:

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