Which of the Following Statements About a Socialist Economic System

question 87

Multiple Choice

Which of the following statements about a socialist economic system is true?

• A)The government owns or controls the major industries.
• B)The government owns no major industries.
• C)Private individuals own and control the major industries.
• D)Private individuals own all companies and industries.
• E)Major industries are internationally-owned.

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Definitions:

Equilibrium GDP

Equilibrium GDP, or Gross Domestic Product, is the level of output where aggregate demand equals aggregate supply, resulting in no unintended changes in inventories.

Inflationary Gap

This term reflects the difference between the actual output of an economy and the maximum potential output it could achieve with full employment, often indicating inflation pressures.

Equilibrium GDP

The level of Gross Domestic Product at which the total quantity of goods and services produced equals the total quantity of goods and services purchased.

Deflationary Gap

A condition in which aggregate demand is lower than the aggregate supply potentially leading to deflation.