One of the fundamental differences between a capitalist and a socialist economy is that while?...
ECONOMICS
JAMB 1997
One of the fundamental differences between a capitalist and a socialist economy is that while?
- A. the former is characterized by complete government ownership of resources, the latter characterized by complete private ownership
- B. in the former, prices act as signals in the allocation of resources, it is central authority that performs this function in the letter
- C. taxes are levied in a capitalist economy, there is no taxation in a capitalist economy
- D. income and wealth are equally distributed in the socialist economy, this is not so in a capitalist economy
Correct Answer: B. in the former, prices act as signals in the allocation of resources, it is central authority that performs this function in the letter
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