Question

Consider yourself a citizen of a country that follows a socialist economic system. Which of the following statements are valid regarding your country?

• A. People have a limited choice of products as customers.
• B. The government is responsible for social welfare.
• C. Private ownership is allowed.
• D. There are no private entrepreneurs.

Answer 1

Answer: (A), (B), (D)

There are no private entrepreneurs.

In a socialist economic system, all means of production are owned by the government or the public sector. The government tries to ensure social welfare and economic equality for all its citizens. On the other hand, private individuals are not allowed to own any property or wealth. Thus, there are no private entrepreneurs and less competition in terms of business and product offering in the market.