one distinction between the Soviet economy and the capatilist economy
Answers
Answer:
The Soviet system was based on the principles of equality and the planned economy controlled by the state. Whereas in the capitalist economy, private ownership is dominant. Land and productive assets are owned and controlled by the capitalist
Answer:
ANSWER :)
In a capitalist economy, production is determined by free market forces such as supply and demand. In a communist economy, the government determines which goods and services get produced and how much is available at any given time.
Explanation:
4 differences
1. Factors Of Production
1. Factors Of ProductionFactors of production is an economic term for the elements required to produce goods and services. These factors include land, labor and capital. In a capitalist economy, factors of production are owned by individuals. In a communist economy, the factors of production are owned by the government
2. Production Decisions
In a capitalist economy, production is determined by free market forces such as supply and demand. In a communist economy, the government determines which goods and services get produced and how much is available at any given time.
3. Prices
3. PricesWhen the government controls supply and demand, it also controls prices. Prices are set by market competition in a capitalist economy. In a communist economy, the government sets the prices for goods and services.
4. Resource Allocation
4. Resource AllocationIn a capitalist economy, successes and failures (profits) of individuals and companies determine the allocation of resources. In a communist command economy, the government determines resource allocation. These decisions are typically made based on macro-economic and/or political considerations.