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Question

Difficulty: EasyCapitalism and Socialism

In a socialist economic system, the means of production, distribution, and exchange are primarily owned and controlled by which of the following?

  1. The state or central governmentAnswer
  2. B
    Private individuals and corporate entrepreneurs
  3. C
    Foreign multinational corporations
  4. D
    Traditional rulers and customary institutions

Answer

The state or central government primary owns and manages the means of production, distribution, and exchange in a socialist economic system.
In a socialist political economy, the state represents society by directly owning, controlling, and planning the core means of production to ensure equitable distribution of social wealth.

Step-by-Step Solution

1
Identify the defining ownership property of socialism.
Socialism substitutes private ownership with collective state ownership to eliminate class inequalities.
Under a socialist ideology, economic resources are held in trust by the state for the benefit of all citizens.

Key Concept

State Ownership in Socialism
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Topics

Capitalism and Socialism

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