Question:
Which economic system is characterized by state ownership of capital and reliance on market allocation of resources?
(1) Capitalism
(2) Socialism
(3) Social market economy
(4) Socialist market economy
(5) Command economy
Correct Answer:
(4)
Answer Explanation:
A socialist market economy combines state ownership of major capital and industries with the use of market mechanisms (price system) to allocate resources.
Topic: Economic Systems Year: 2023
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