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Market and Socialist Economies Can Be Contrasted in All the Following

Question 31

Multiple Choice

Market and socialist economies can be contrasted in all the following ways except that:


A) under a market economy labor is allocated by individual choice based on wage levels; under traditional socialism it is allocated by a government planning board.
B) under a market economy government plays no role in the market; under socialism, government planning boards make most major economic decisions.
C) under a market economy the distribution of income is to each according to his ability, effort, and inheritance; under ideal socialism the distribution of income is to each according to his need.
D) under a market economy self-interest is the primary motive of economic activity; under socialism, individuals are supposed to act from considerations of the general good.

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