Question

Which of the following is a characteristic of a socialist economy?

• A. Strong emphasis on individual profit.
• B. Absence of private property rights.
• C. Free market with no government intervention.
• D. Wide range of entrepreneurial freedom.

Answer 1

Answer:

B. Absence of private property rights.

Socialist Economy

• An economy in which the means of production are publicly owned and operates on the basis of centralized planning

• Socialist economies are characterized by collective/state ownership of means of production

• Private property rights are either severely limited or completely absent