GENERAL KNOWLEDGE

Detailed explanation-1: -In practice, communism is an economic system in which all important economic deci-sions are made by government leaders. These leaders decide what, how, and for whom goods and services will be produced. The way goods are produced and distributed is controlled by government leaders for the good of society as a whole.

Detailed explanation-2: -In a market economy, the producer gets to decide what to produce, how much to produce, what to charge customers for those goods, and what to pay employees. These decisions in a free-market economy are influenced by the pressures of competition, supply, and demand.

Detailed explanation-3: -In a command economy, the central government dictates the level of production of goods and controls their distribution and prices. Proponents of command economies argue government control rather than private enterprise can ensure the fair distribution of goods and services.