In a Communist state, the factor of production is left in the hands of the government. The government has the authority to allow what type of business to allow. There is also capitalism and I will give more explanation later. Before then, what countries are communists? Keep reading to find out.
What Countries Are Communist?
The existing communist countries in the world include the following below.
- North Korea
What Are The Features Of A Communist Country?
The following are some of the features of a communist state.
- Demand and supply are left in the hands of the state.
- Private ownership is not allowed.
- Each individual is paid compensation according to his need. This eliminates unfair gaps in incomes.
- Work and compensation are provided by the government.
What Are The Differences Between Communism and Capitalism?
- In a capitalist economy, factors of production are owned by individuals. In a communist economy, the factors of production are owned by the government.
- In a capitalist economy, production is determined by free market forces such as supply and demand. In a communist economy, the government determines which goods and services get produced and how much is available at any given time.
- The Government sets the price of goods and services in a communist state while market competition does so in a capitalist economy.