Conflict and tension between East and West, 1945–1972

Question 1

What is communism?

Answer 1

-All property is owned by the people and distributed according to their ability, contributions and needs
-Controlled economy
-Profit of state-owned businesses goes to the state
-One party government
-Lower average living standard but wealth is more equally shared

Question 2

What is capitalism?

Answer 2

-Economic and political system where a country’s trade and industry is controlled by private owners for profit, rather than by the people or the government
-Free economy
-Anyone can start a private business with own profit
-Greater differences in wealth but majority have a high average standard of living