Economic Systems: Capitalism vs Socialism

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Which economic system is characterized by private ownership of the means of production?

Agricultural Economy

Socialism

Mixed Economy

Capitalism (correct)

What is a key feature of socialism?

Private ownership of businesses

Government control of production (correct)

Free market principles

Competition among businesses

Which economic system combines elements of both capitalism and socialism?

Mixed Economy (correct)

Complex Economy

Industrial Economy

Open Economy

What type of economy focuses primarily on agriculture and related industries?

Industrial Economy Signup and view all the answers

In a closed economy, which statement is true?

Limited trade with other countries Signup and view all the answers

What is the primary tool used to solve economic problems under capitalism?

Price mechanism Signup and view all the answers

What are the conditions required for the price mechanism to effectively play its role?

Perfect competition and free markets Signup and view all the answers

What is one of the limitations of the price mechanism as a tool to solve economic problems?

Ignores externalities Signup and view all the answers

What economic system relies on central planning to solve basic economic problems?

Socialism Signup and view all the answers

Which economic system combines elements of both capitalism and socialism?

Mixed economy Signup and view all the answers

Economic Systems: Capitalism vs Socialism

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Questions and Answers

Which economic system is characterized by private ownership of the means of production?

What is a key feature of socialism?

Which economic system combines elements of both capitalism and socialism?

What type of economy focuses primarily on agriculture and related industries?

In a closed economy, which statement is true?

What is the primary tool used to solve economic problems under capitalism?

What are the conditions required for the price mechanism to effectively play its role?

What is one of the limitations of the price mechanism as a tool to solve economic problems?

What economic system relies on central planning to solve basic economic problems?

Which economic system combines elements of both capitalism and socialism?

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