Question

As compared to other economic systems, inequalities of incomes is relatively less in _______ economic system.

• A. capitalist
• B. socialist
• C. mixed
• D. none of the above.

Answer 1

The correct option is B socialist

As compared to other economic systems, inequalities of incomes is relatively less in the socialist economic system. In this system, the means of production and distribution is controlled by the government. The economy is centrally planned by the government so that the useful goods are produced with the objective to look after the needs of the poor section of the society as well. This system also ensures that the disparities in income distribution become lesser.