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The concept of a socialist economy was first propounded in 'The Communist Manifesto' (1848) by:
AKarl Marx and Frederick Engels
BAdam Smith and David Ricardo
CAlfred Marshall and A. C. Pigou
DPaul Samuelson and Lionel Robbins
Answer & Solution
Correct answer: A. Karl Marx and Frederick Engels
1. The unit credits the socialist economy concept to Karl Marx and Frederick Engels.
2. They set it out in 'The Communist Manifesto' published in 1848.
3. Hence the correct pair is Marx and Engels.
4. The other pairs are associated with classical, neoclassical and modern microeconomics, not socialism's origin.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 1 Unit II "Basic Problems of an Economy and Role of Price Mechanism", p.5_
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