Communism

Communism

An economic system where the government makes the decisions.

What is Communism?

• In this system the government makes the decisions.

• They decide what to produce, how much to produce, and who will receive what is produced.

• There might be some private decisions and businesses, but the government is in control.

Multiple Choice

Who makes the decisions in a communist economy?

• The People or Citizens

• The Government

How are prices set?

• In communism the government will set the price.

• It does not matter how much demand there is for that product or service.

• For example no matter how many people want a Big Mac the government would set the price to 5 dollars.

Multiple Choice

How are prices set in a communist economy?

• The people set the prices by what they buy and sell.

• The government sets the prices

Who Owns the Businesses?

• The government owns the businesses.

• There may be some private businesses, but that would be rare.

• The government will say what to produce and how much of it.

• For example they would tell McDonald's they can only produce 50 Big Macs a day and nothing else. Sorry no Mcflurrys or quarter pounders.

What countries have communism?

• China

• North Korea

• Laos

• Vietnam

• Cuba

Multiple Select

Check all the countries that have a communist economy.

• The United States

• Cuba

• Vietnam

• China

Other Economic Systems

• A traditional economy is where people make goods based on tradition and custom. For example you would work the job that your parents worked.

• A mixed economy is where there is a combination of private ownership and government control. All countries have some sort of mixture.