Which of the following statements highlight(s) a few drawbacks of the socialist economy?

Less investment potential

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Importance to social welfare

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Limited choice of products

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Economic equality for all

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Solution

The correct option is C Limited choice of products
In a socialist economy, all means of production are owned by the public sector. In such a system, there are no private entrepreneurs. Therefore, the potential of investment is less. Moreover, due to the presence of limited number of producers, the choice of products for the customers is also limited.

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