Communism

Command Economy

Command Economy

Production of goods and services is determined by a central government, which is usually owns the means of production. Production does not necessarily reflect the consumer demand. Also called a planned economy.

Decisions: All decisions are made by the government on production and selling of products.

Ex: China

Communism

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

Ex: North Korea

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