Which of the following best summarize the difference between a free enterprise (capitalist) economy and a socialist (communist) economy? *
A:In a free enterprise or capitalist economy, private individuals own most businesses. In a socialist or communist economy, the government regulates and owns most businesses.
B:In a socialist or communist economy, there are no government regulations.
C:In a free enterprise or capitalist economy, consumers have fewer choices of products to buy.
D:In a free enterprise or capitalist economy, the government controls prices.
Also I think it's D but Im not sure
I meant A
I think it is D
A is correct!
(D is the opposite!!)
The correct answer is A:
In a free enterprise or capitalist economy, private individuals own most businesses. This means that individuals are able to start, own, and manage their own businesses, and they have the freedom to make decisions about the production and distribution of goods and services. The government's role in this type of economy is usually limited, with regulations in place to enforce fair competition and protect consumers and workers.
On the other hand, in a socialist or communist economy, the government regulates and owns most businesses. In this type of economy, the means of production are owned and controlled by the state or the community as a whole. The government plays a larger role in planning and directing economic activity, and it aims to distribute resources and wealth more equally among the population. The focus is often on meeting the needs of society as a whole rather than maximizing individual profit.
To understand the difference between these economic systems, it is important to look at the ownership and control of businesses and the role of the government. One way to determine the answer to this question is by identifying the key characteristics of each system and then comparing them. In this case, option A accurately summarizes the main difference between a free enterprise (capitalist) economy and a socialist (communist) economy.