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A controlled economy is vital to the existence of communist governments.
a. True
b. False

1 Answer

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Final answer:

The presence of a controlled economy is generally considered essential to the functionality of communist governments, which is historically evident in several countries that have adopted communism. These governments make centralized decisions on production and pricing with the intended aim of societal equality and prevention of worker exploitation, although actual practices have deviated from theory.

Step-by-step explanation:

The statement that a controlled economy is vital to the existence of communist governments is generally true. In ideologies such as communism, which can be associated with countries like the former Soviet Union, China, North Korea, and Cuba, the national government often exercises central control over economic activities. This control involves making decisions on what to produce, how much to produce, and at what price points. For example, under communist leadership, entire industries may be nationalized, and the government will dictate their operation, often to prevent worker exploitation and create a society where income inequality is greatly diminished or nonexistent.

In a command economy, the government aims to manage the economy to achieve certain social or developmental goals, which is often contrasted with the more market-driven, capitalist economies where business decisions are predominantly made by private enterprises responding to market signals.

However, the practice of communism has often diverged from its theoretical basis. Historically, the implementation of communism has sometimes been characterized by human rights violations and a disconnect between the governing elite's control and the proletariat's aspirations. It's also notable that some modern-day economies, such as China, have incorporated elements of controlled private ownership and market mechanisms within their largely state-run economic frameworks.

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