Question

In a socialist economy, the concept of consumer sovereignty is _________.

• A. restricted
• B. unrestricted
• C. recognised
• D. none of the above

Answer 1

The correct option is A restricted

In a socialist economy, the concept of consumer sovereignty is restricted as the government plays a comprehensive role in almost all economic activities, such as production, distribution, and consumption, of a nation. In a socialist economy, not only the ownership of private property is allowed to a limited amount, but the concept of a free-market mechanism is also eliminated. The private ownership of resources, in a socialist economy, is changed by state ownership. In addition, in a socialist economy, the government plans and regulates all the economic activities centrally at a state level. In a socialist economy, an individual’s decisions are totally dependent on the limit decided by the government.

Hence, A is the correct option.