Question

In a purely capitalist economy, economic decisions are determined by the _____________________. In a purely socialist economy, economic decisions are determined by the ____________________.

Answer 1

market, politicians

Step-by-step explanation:

In capitalist economy the driving force for a business is profit. The market place where business takes place is called the free market economy. The free market economy is purely driven by the supply and demand of the goods. The market determines the economy of the country.

In a socialist government the market is not free but functions under the regulations of the government. The government's main aim is the distribution of wealth among the masses. This cannot happen under the free market economy so the politicians take control over the markets.