Question

Select communism, free enterprise or both for each description.

unemployment exists - ??
entrepreneurs function quite freely - ??
government sets prices - ??
profit provides an incentive for work - ??
government owns the farms and mines - ??

Answer 1

Free Enterprise

Free Enterprise

Communism

Free Enterprise

Communism

Step-by-step explanation:

Unemployment exists -? Free enterprise

• Because in communism society or government is responsible for giving livelihood or compensation to whole community

• Hence, unemployment is not a characteristic of communism

Entrepreneurs function quite freely -? Free enterprise

• Since individuals have the ownership rights in a free enterprise economy, individuals can decide what to produce and how to produce

• In communism, the society owns the means of production and resources

• Individual freedom is not a characteristic of communism.

The government sets prices ? Communism

• Prices are set by the government since communism works on the basis of central planning

• A free enterprise economy works on the basis of market forces. Hence, prices are set according to the market forces of supply and demand.

Profit provides an incentive for work ? Free enterprise

• Profit is replaced by common good in communism and profit of any individual/enterprise is equally shared by the community

• In free enterprise, profit provides an incentive to work

The government owns the farms and mines -? Communism

• State or societal ownership is a characteristic of communism

• In free enterprise, individual has ownership rights

Answer 2

unemployment exists - both

entrepreneurs function quite freely - free enterprise

government sets prices - communism

profit provides an incentive for work - free enterprise

government owns the farms and mines - communism

Step-by-step explanation:

The communism means that the resources of the country and the economy are owned by the government of the country. The major decisions of the economy like the production, consumption, owning of the resources and so on are owned by the government of the country. The major motive of this economy is the welfare of the people.

On the other hand, in the case of free enterprise the resources are owned by the citizens of the country and the major decisions are also taken by them and not by the government of the country. This type of economy has the major motive of earning profit.