A socialist system is characterized by the collective or communal ownership of the means of production, such as land, factories, and resources, with the goal of achieving a more equitable distribution of income and wealth. This contrasts with capitalism, which is based on private ownership and the pursuit of profit.

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A Socialist System

Question 94

Multiple Choice

A socialist system:

A) shares the same essential features as capitalism, but attempts to equalize the distribution of income.
B) has collective ownership of many factors of production and attempts to equalize the distribution of income.
C) depends exclusively on planning to decide what goods and services will be produced, and exclusively on markets to decide how they will be distributed.
D) none of the above.

Correct Answer: