Which of the Following Statements Is True About Socialist Economy

question 22

Multiple Choice

Which of the following statements is true about socialist economy?

• A) It is an economic system that is based on private ownership, economic freedom, and fair competition.
• B) Tax revenues fund services that citizens in free enterprise systems would have to pay for themselves.
• C) The dynamic interaction between buyers and sellers decides the prices in the market.
• D) Enterprises are run efficiently in the best interest of the government.

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Definitions:

Partnerships

A legal arrangement where two or more individuals share ownership of a business, including its profits, losses, and responsibilities.

Proprietorships

A business structure owned by a single individual where the owner and the business are legally treated as the same.

Owner's Equity

The owner's residual interest in the assets of a business after deducting liabilities, representing the net assets owned by shareholders.

Creditorship Claim

This term does not technically exist in precise financial terminology as presented; it's possibly a mistaken combination of terms relating to claims or rights held by creditors.