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Which of the Following Is the Difference Between a Capitalist

Question 20

Multiple Choice

Which of the following is the difference between a capitalist economy and a socialist economy?


A) A capitalist economy is characterized by production based on economic demand,whereas a socialist economy is characterized by production based on human demand.
B) A pure capitalist economy is very rare,whereas a pure socialist economy is followed in most of the countries today.
C) A capitalist economy is primarily motivated to achieve collective goals,whereas a socialist economy is motivated to make higher profits.
D) A capitalist economy allows greater government intervention in deciding on economic activities,whereas a socialist economy restricts government intervention in such activities.

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