Capitalism, also called free market economy, is an economic system. This means productions are privately owned.
In a capitalist economy, factors of production are owned. by individuals. Production is determined by free market forces such as supply and demand. Capitalism focus on the individual and his/her own progress in life
Prices are set by market competition in a capitalist economy. Successes and failures of individuals and companies determines resource allocation
Capitalism believes when people compete against one another, they are able to achieve greater things. Capitalism also believes that the government should not interfere in the economy and the rights of individuals.
Communism is a political and economic ideology. With communism, all property is owned by the community and each contributes and both receives according to their ability and needs.
The government sets the prices for goods and services in a communist economy. It is up to the government on resource allocations and these decisions are typically made on political considerations.
In a communist economy, factors of production are owned by the government. The government which goods and services get produced and how much is available at any given time. Communism focus on the progress of the community as a whole.
Communism believes that governments should make sure that everyone's needs are being met. They also believe that there is central control in the economy and when people work together as equals, they can achieve greater things.