Question

In a socialistic economy the economic activities are guided by ___________.

• A. maximum social welfare
• B. maximization of private profit
• C. employment generations
• D. all of the above

Answer 1

The correct option is A maximum social welfare

1. In a socialistic economy, economic activities are guided by maximum social welfare.

2. This is because the government does the central economic planning.

3. This is to ensure that the resources are distributed equally and fairly among the rich and the poor.

4. Thus there is an equitable distribution of income and wealth.