Question

What is a characteristic of a socialist economy ?

• A. Ownership of means of production by private individuals.
• B. Activities primarily aimed at social welfare and absence of private entrepreneurship.
• C. Profit motive as the main driving force.
• D. Free market with no control over price.

Answer 1

Answer:

B. Activities primarily aimed at social welfare and absence of private entrepreneurship.

Socialist economy

Socialist economy is an economic system in which the means of production are owned by the public sector. This economic system works on centralized planning. Let us analyze other features of a socialist economy:

• Activities aimed at social welfare
  

• Absence of private entrepreneur
  

• Absence of private ownership of wealth and transfer of wealth to legal heir
  

• Economic equality