Question

In a socialistic economy ______ mechanism is found

• A. dual price system
• B. market driven price system
• C. administrative price control
• D. none of the above

Answer 1

The correct option is C administrative price control

In a socialistic economy, administrative price control mechanism is found. In this system, the means of production and distribution is controlled by the government. And thus the price of products is also regulated 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 the income distribution becomes lesser.