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How does a free enterprise economic system differ from a communist economic system?

User Shekeine
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Answer:

In a communist economic system, there is common ownership of the means of production, while in a free enterprise economic system, there is private ownership of the means of production.

For example, under communism, the workers of a factory own the factory, while under a free enterprise economic system, the workers do not own the factory, the factory is owned by other people who benefit from the profits.

In a communist economic system, the economy is planned. Either a central or a local authority determines what to produce, for who, and how. In a free enterprise economic system, the economy is allowed to move freely, and all consumers and producers indirectly influence the direction of the economy through the forces of supply and demand.

User Alexunder
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