Describe the role of the state in a communist economy.

World Economic Systems Questions



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Describe the role of the state in a communist economy.

In a communist economy, the state plays a central role in controlling and directing economic activities. The state owns and controls the means of production, such as factories, land, and resources, and makes decisions regarding production, distribution, and consumption. The state also determines the allocation of resources, sets production targets, and plans economic development. Additionally, the state is responsible for ensuring social equality and providing basic necessities, such as healthcare, education, and housing, to all citizens.