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What are the major differences between a communist economy and a free market economy?
Wiki User
∙ 9y ago
- a communist economy's money is controlled by the government and a capitalist economy is controlled by the people.
2. in a capitalist economy the people choose the jobs, but in a communist one the government chooses your job, and it is usually based on your father or mothers
Wiki User
∙ 11y ago
Wiki User
∙ 10y agoFundamentally, and in broad terms, both are economic systems whose main concern is "the means of production". "Means of production" refers to farms, factories, mines, oil fields, and so on, as well as the equipment and machines used to run these things. To keep things simple, I'll just refer to factories.
- In capitalism, anyone can own the means of production. That is, anyone who can get enough money, can buy a factory . That person (or group of people) can then decide how the factory runs and what happens to the profits.
- In communism, the workers own the means of production. That is, the people who work in the factory own the factory and share the money the factory makes.
From those basic concepts, it gets complicated, because each system has their own way of approaching things. It should also be noted that there are many different kinds of capitalism (Laissez-faire, Free Market, State, Mixed, and so on) and many different kinds of communism (Marxism, Leninism, Maoism, Trotskyism, and so on). Each of those various branches then has their own way of running things.
In addition, implementation is another factor- so, for example, in the Soviet Union, which called itself communist, the workers generally had very little say in what happened, and the all-powerful government decided things for them.
paulbenn
Capitalist economy: tiny minority own the means of production, wages system, production for sale. Communism has no money and no exchange, hence no economy, just people co-operating for the common good.
Wiki User
∙ 11y agoCapitalism encourages competition among businesses; communist societies have little or no competition.
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What is the difference between market economy and mixed economy?
The difference between market economy and mixed economy is that a marked economy is a marked economy and a mixed economy is a mixed economy
What is the difference between a mixed economy and a market economy?
A mixed economy is a combination of communist, market and traditional economies. A market economy basically has free reign over the production and distribution of goods and services.
Is Angola a free market economy?
It is an oil based Communist State.
WhaT is the difference between free enterprise and market economy?
The difference between free enterprise and market economy is that in a market economy, thr govevernment has little effect on what you do with your company, and in a free enterprise economy, the government has more control over wat goes on with the company. If you. Are over the age of 12 and you asked this, you need some help because I am 11 and I wrote this.
What type of an economic system is Venezuela?
Venezuela has a more communist than capital economy.
What is the difference between market economy and mixed economy?
The difference between market economy and mixed economy is that a marked economy is a marked economy and a mixed economy is a mixed economy
Is china a free market economy?
No. it should be under mixed market economy
What is the difference between a free market and communist economy?
In a capitalist economy, production is determined by free market forces such as supply and demand. In a communist economy, the government determines which goods and services get produced and how much is available at any given time. Hope it helps!
What is the difference between a mixed economy and a market economy?
A mixed economy is a combination of communist, market and traditional economies. A market economy basically has free reign over the production and distribution of goods and services.
Is Angola a free market economy?
It is an oil based Communist State.
Does US have a command economy?
No, the US has a market economy a result of its capitalist policies, command economies can be found in communist countries.
WhaT is the difference between free enterprise and market economy?
The difference between free enterprise and market economy is that in a market economy, thr govevernment has little effect on what you do with your company, and in a free enterprise economy, the government has more control over wat goes on with the company. If you. Are over the age of 12 and you asked this, you need some help because I am 11 and I wrote this.
What is the difference between industry and market?
what is the differences between Industry and Market
Why china shifted to market economy?
Student Protests and the only other major communist economy, the Soviet Union, collapsed in 1991.
What type of an economic system is Venezuela?
Venezuela has a more communist than capital economy.
What is the difference in job security under a communist state and a free market economy?
Communism has no state and no concept of a job. People will do work that they find fulfilling and useful. In a so-called free market economy, people are at the mercy of the market and their employer’s need for profit, and so have little real job security.
What is the type of economy of Bulgaria?
Till 1989 (like other communist party ruled socialist countries of Europe) Bulgaria followed Marxist-Leninist model of State owned and regulated economy and there was no free and market economy.
