Question

Which of the following criteria is considered while classifying the economic systems?

• A. The level of economic development
• B. The ownership of means of production
• C. The output of the economic sectors
• D. The total production of the economy

Answer 1

The correct option is B The ownership of means of production

The economic systems are classified into socialist, capitalist, and mixed on the basis of the ownership of the means of production. In a socialist economy, ownership lies with the public sector. In a capitalist economy, ownership lies with the private sector, while it lies with both public and private sectors in a mixed economy.