Answer:
Step-by-step explanation:
An economic system is a structure with predefined rules by which a society or nation distributes its resources to its people. Two major types of economic systems are capitalism and communism. They are two very different mechanisms in terms of their philosophies.
Capitalism
Capitalism takes great pride in calling itself a free economic system. In this system, people have the freedom to produce and sell products according to their interests. Government interference in the marketplace is minimal. As a result, the competition among the sellers to retain buyers determines a product's price.
Communism
The goal of communism is to create a "classless" society. In this system, the land, factory, or products do not belong to any individual. Everyone is supposed to work for the welfare of society. The profit is shared among the public. In reality, the state controls the marketplace and there is little to no free will for the businessmen in the market.