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levacccp [35]
3 years ago
8

How does a free enterprise economic system differ from a communist economic system?

History
1 answer:
Juli2301 [7.4K]3 years ago
8 0

Answer:

In a communist economic system, there is common ownership of the means of production, while in a free enterprise economic system, there is private ownership of the means of production.

For example, under communism, the workers of a factory own the factory, while under a free enterprise economic system, the workers do not own the factory, the factory is owned by other people who benefit from the profits.

In a communist economic system, the economy is planned. Either a central or a local authority determines what to produce, for who, and how. In a free enterprise economic system, the economy is allowed to move freely, and all consumers and producers indirectly influence the direction of the economy through the forces of supply and demand.

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