A Major Premise of a Socialist System Is

question 69

Multiple Choice

A major premise of a socialist system is

• A) to make sure that the people who create wealth are allowed to keep that wealth.
• B) to reduce the inequality in the distribution of wealth.
• C) to create incentives to encourage entrepreneurs to create jobs and economic growth.
• D) to keep tax rates extremely low so that businesses do not need to support government projects.

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Definitions:

Cost per Unit

The expense incurred to produce, acquire, or maintain one unit of a product or service, often used to analyze and manage business efficiency.

Economically Efficient

A condition in which a system optimizes the allocation of resources, producing the maximum number of goods and services with the least waste.

Entrepreneurial Ability

The skillset that enables individuals to recognize business opportunities, innovate, undertake risks, and manage businesses effectively.

Production Techniques

The methods and processes used by firms to produce goods or deliver services, including all aspects from initial design to final output.