Question

Which are accurate statements regarding communist and capitalist systems?

In communism, the government has little control of the economy.


There is more competition in the marketplace in capitalism than in communism.


Profit motivates people to work hard in capitalism but not in communism.

Answer 1

B. There is more competition in the marketplace in capitalism than in communism.

C. Profit motivates people to work hard in capitalism but not in communism.

Answer 2

Options B and C.

Option A is not one of the correct answers because communism is quite the opposite: the government controls nearly everything in economy.

Competition in the marketplace is more intense in capitalistic societies, since people want more money and will innovate more to achieve that money.

This isn't the same in communism. Because prices are set and can't be changed, people won't have a reason to try and innovate and think of new solutions.

Similarly, people won't be as inclined to work hard in communist societies since everyone gets the same amount of pay regardless of how hard they work.