A major distinguishing feature between capitalist and socialist (or command)economies is that
A)under capitalism the average citizen is always wealthier than in socialist economies
B)decision making is typically decentralized in socialist economies and is centralized in capitalist economies
C)socialist countries all have red flags and capitalistic economies do not
D)resources are publicly owned in capitalist economies
E)decision making is typically decentralized under capitalism while it is centralized in command economies

Question

Quizplus · Accepted Answer

One of the major distinguishing features between capitalist and socialist (or command) economies is the way decision-making is handled. In capitalist economies, decision making is typically decentralized, meaning that individuals and firms are free to make their own economic decisions. On the other hand, in socialist (or command) economies, decision making is typically centralized, meaning that the government makes most of the economic decisions. This fundamental difference in decision-making is one of the key points of difference between these two types of economies.

A Major Distinguishing Feature Between Capitalist and Socialist (Or Command)economies