Question

Which of the following statements reflects the significant characteristics of a socialist economic system?

• A. All the wealth and resources of the country are owned and managed by a private entity.
• B. All the wealth and resources of the country are owned and managed by both public and private entities.
• C. All the wealth and resources of the country are owned and managed by the government alone.
• D. All the wealth and resources of the country are owned by the government but managed by a private entity.

Answer 1

The correct option is C All the wealth and resources of the country are owned and managed by the government alone.

In a socialist economic system, the government of the country owns and manages all the wealth and resources by itself. It is also referred to as collective or common ownership of property. Russia is an example of a country that follows a socialist economic system.