Question

Which of the following is true regarding capitalism and communism? A.Communist governments allow some businesses to be privately owned. B.Capitalist governments control all production of goods. C.Communist governments merely set rules and oversee production. D.Capitalist governments role is limited to regulating and taxation.

Answer 1

Option D is true, stating that in capitalism, governments' roles are limited to regulation and taxation, while in communism, the government controls all means of production.

Step-by-step explanation:

The question asks about the differences between capitalism and communism, specifically in regard to government roles and ownership of businesses. Of the options given, option D is true, stating that capitalist governments' role is limited to regulating and taxation. In a capitalist system like the United States, individuals and firms own private property and make decisions that are coordinated through markets. The government may regulate and tax businesses, but does not control all production. In contrast, communism involves direct governmental ownership and control of all means of production in a command or planned economy.