ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Capitalism led to corruption and totalitarian rule
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communism led to corruption and totalitarian rule
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capitalism led to equal distribution of wealth and total fairness
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communism led to equal distribution of wealth and total fairness
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Detailed explanation-1: -In a free enterprise economy, prices are determined by the forces of supply and demand. Food is produced through commercial agriculture in which farmers grow food to sell to others, while goods are manu-factured through commercial industries. E. In a communist economy, the government owns and operates all businesses.
Detailed explanation-2: -In most communist countries, the government makes those decisions on their behalf. This system is called a command economy.
Detailed explanation-3: -An economic system is any system of allocating scarce resources. Economic systems answer three basic questions: what will be produced, how will it be produced, and how will the output society produces be distributed?
Detailed explanation-4: -Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society. The essential feature of capitalism is the motive to make a profit.