What is the role of the market in a communist system?

Economics Communism Questions



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What is the role of the market in a communist system?

In a communist system, the role of the market is significantly diminished or eliminated altogether. Instead of relying on market forces to determine the allocation of resources and distribution of goods and services, a communist system typically involves central planning by the government. The government controls the means of production and makes decisions regarding production, pricing, and distribution based on the needs of the society as a whole, rather than individual profit motives.