Use the drop-down menu to complete each statement. Communist countries usually have economies. A command economy that still allows private property and ownership is called. A command economy in which the government controls everything is called .

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Communist nations have a command economy. When a command economy allows private enterprise, this is Socialism. When everything is controlled by the government, this is communism.

In a communist country:

  • All resources are controlled by the government
  • The government decides what should be produced and is the only supplier of goods and services

Such an economy is known as a command economy but when a communist country still allows some form of private enterprise like China does, this is called Socialism which is a less restrictive form of communism.

In conclusion, socialism allows for some private ownership but communism leads to a command economy.

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