alleryWhich feature is characteristic of a socialist economy rather than a capitalist one?
AStrong competition among private firms
BProfit motive as the driving force
CRelatively equal distribution of income
DUnrestricted consumer sovereignty
Answer & Solution
Correct answer: C. Relatively equal distribution of income
1. Socialism aims to narrow differences in income and wealth.
2. Relative equality of income is one of its key features.
3. Profit motive, competition and full consumer sovereignty belong to capitalism.
4. Therefore relatively equal income distribution is the socialist feature.
_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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