Which of the following statements is true?
A) The government plays absolutely no role in economies characterized by communism.
B) The government plays absolutely no role in economies characterized by market economies.
C) Competition among firms is likely to be higher in communist economies than in market economies.
D) Competition among firms is likely to be higher in market economies than in communist economies.

Question

Quizplus · Accepted Answer

In market economies, competition among firms is a significant driving force, as the market forces ensure that the most efficient firms succeed, and those that cannot keep up eventually fail. In communist economies, the government has a central role in controlling the means of production, and there is less competition among firms as the government chooses which firms to support or eliminate.

Which of the Following Statements Is True