POST WAR WORLD 1946 1959
KOREAS PARTITION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A.The government promotes competition
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The government provides incentives for innovation
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The government emphasizes the production of consumer goods
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The government controls all business activities
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Detailed explanation-1: -In communist nations, government makes all economic decisions; owns the land, natural resources, industry, banks, and transportation system; and controls all mass communication. Why have governments of communist nations such as China used a system of five year plans for the economy?
Detailed explanation-2: -Communism, also known as a command system, is an economic system where the government owns most of the factors of production and decides the allocation of resources and what products and services will be provided.
Detailed explanation-3: -In a true communist economy, the community makes decisions. In most communist countries, the government makes those decisions on their behalf. This system is called a command economy. The leaders create a plan that outlines their choices, and it’s executed with laws, regulations, and directives.
Detailed explanation-4: -The command economy is a component of a communist political system, while a free market system exists in capitalist societies.