A major disadvantage of a socialist economy is that
ECONOMICS
JAMB 2012
A major disadvantage of a socialist economy is that
- A. corruption is rampant
- B. consumer's sovereignty is lost
- C. income inequality is entrenched
- D. there is high level of unemployment
Correct Answer: A. corruption is rampant
Explanation
One of the major criticisms of socialism are that socialist countries have a tendency to develop too many layers of bureaucracy, which leads to corrupt practices. The government controls much of the economy's resource. They decides the whats, whens, and hows of production.
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