Question:
A key feature of the socialist economic system is
(1) profit maximisation as the main objective.
(2) private ownership of all means of production.
(3) public ownership of key industries and resources.
(4) minimal government intervention into the economy.
(5) the government plays no role in economic decisions.
Correct Answer:
(3)
Answer Explanation:
A socialist (command) economic system is characterized by state or public ownership of the major means of production. Resource allocation and production decisions are made by a central planning authority rather than free market forces.
Topic: Economic Systems Year: 2024
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