Question

Which of the following applies to a Socialist Economy?

• A. Socio-economic objectives
• B. Market mechanism
• C. Wide inequalities of income
• D. Competition among producing firms

Answer 1

The correct option is A Socio-economic objectives

A socialist economy is a organization of manufacture where goods and services are formed directly for use, in difference to a capitalist economic system. Manufacture under collectivism would be directly and completely for use.

A socialist economic system is characterized by social ownership and operation of the means of production that may take the form of independent cooperatives. The basis motive is not to use the means of production for profit, but rather for the interest of social welfare.

The correct option is A.