Question

Possibility of duplication of efforts or wastage of resources on advertisements, legal battles, etc. are less in ________.

• A. capitalist economy
• B. mixed economy
• C. socialist economy
• D. barter economy

Answer 1

Answer: (C)

socialist economy

Government intervenes in the socialist economy in order to solve the problem of choice/central problem of an economy. Free regulation of demand and supply forces does not take place in centrally regulated economy. In this type of economy, possibility of fraud practices, duplication of work are relatively less since government controls the economy.