A major distinction between capitalism and socialism concerns the distribution of income.
Level of Learning 2: Understanding of concepts and principles

Question

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Capitalism is characterized by a free market economy where individuals and corporations own and control the means of production, and production and distribution decisions are made based on market forces. In this system, income is distributed based on one's ability to generate profit or provide value in the market. Socialism, on the other hand, is characterized by collective ownership and control of the means of production, with production and distribution decisions made for the benefit of the community as a whole. In this system, income is distributed based on one's contribution to society, rather than their ability to generate profit. Therefore, the distribution of income is a fundamental difference between capitalism and socialism.

A Major Distinction Between Capitalism and Socialism Concerns the Distribution