Differentiate Between Communist, Socialist, and Capitalist Economic Systems

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The Answer is Karl Marx (1818-1883) first described communism as a society in which the people, without regard to class, own all the nation's resources. In his ideal political-economic system, everyone contributes according to ability and receives benefits according to need. In a communist economy, the people (through the government) own and operate all businesses and factors of production. Central government planning determines what goods and services satisfy citizens' needs, how the goods and services are produced, and how they are distributed. No true communist economy, however, exists today that satisfies Marx's ideal. Socialism is an economic system in which the government owns and operates basic industries-postal service, utilities, transportation, health care, and banking, and some manufacturing-but individuals own most businesses. Central planning determines what basic goods and services are produced, how they are produced, and how they are distributed, while individuals and small businesses provide other goods and services based on consumer demand and the availability of resources. Citizens are dependent on the government for many goods and services. Capitalism, or free enterprise, is an economic system in which individuals own and operate the majority of businesses that provide goods and services. Competition, supply, and demand determine which goods and services are produced, how they are produced, and how they are distributed.

Differentiate Between Communist, Socialist, and Capitalist Economic Systems

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Differentiate Between Communist, Socialist, and Capitalist Economic Systems

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Correct Answer:
Verified