Communism

Government

Description

Communism: the government owns and makes ALL decisions concerning the economy, holds all political power, and determines the distribution of goods and services.


Example: North Korea

Economy

Command: production of goods and services is determined by central government, which usually owns the means of production. Production doesn't necessarily reflect the consumers. (can be called a Planned Economy)


** The government decides what to produce, how to produce goods and how to distribute goods & services within the economy.


Ex: Cuba

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