Capitalism vs Communism: Key Beliefs Flashcards

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  • Make sure you understand the information on each card. If something's unclear, click the link to the revision notes at the bottom of the page for more details.

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Note: We may include questions that have multiple correct answers. It's useful to remember specific examples to understand these concepts better.

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What is capitalism?

Capitalism is an economic system where most businesses are privately owned to make a profit.

What is communism?

Communism is an economic system where the state owns most land and businesses to share wealth more equally.

In a capitalist system, who usually owns businesses and farms?

In capitalism, private individuals and companies own most businesses and farms.

In a communist system, who usually owns factories and major farms?

In communism, the state owns factories and major farms on behalf of the people.

How are leaders chosen in a capitalist democracy?

In a capitalist democracy, people choose leaders in free elections with more than one party.

How are leaders chosen in a communist one-party state?

In a communist one-party state, only the communist party is allowed and it controls who can stand in elections.

What does capitalism say about making profit and competition?

Capitalism encourages profit and competition between businesses, which should give people more choice.

What does communism say about wealth and equality?

Communism aims to share wealth more equally and reduce the gap between rich and poor.

How do capitalism and communism differ over personal freedoms like speech and the press?

Capitalism usually allows more free speech and a free press, while communist states often limit criticism of the government.

Which superpower followed capitalism and which followed communism after 1945?

After 1945, the USA followed capitalism and the USSR (Soviet Union) followed communism.