Which of the Following Is a Difference Between Communism and Socialism,as

question 1

Multiple Choice

Which of the following is a difference between communism and socialism,as described by the text?

• A)Under socialism,the government owns some firms,but under communism,the government does not own any major assets.
• B)Under communism,the government assumes total management of the economy,whereas under socialism,the government does not try to manage the overall economy.
• C)Under socialism,the economy operates mainly through private transactions,but under communism,the government owns a number of major industries and tries to provide for people's basic economic needs.
• D)Under communism,the government manages the economy completely but does not attempt to provide for people's basic needs; under socialism,the government does not manage the economy completely,but does attempt to provide for people's basic needs.
• E)Under socialism,the government owns more industries than a communist government,but provides less direct benefit for individuals' welfare.

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Definitions:

Inventory Items

Goods or materials that a business holds for the purpose of sale or production.

Retail Inventory Method

An accounting method used by retailers to estimate inventory cost by using a consistent markup and grouping similar items.

Cost-To-Retail Ratio

A calculation used in inventory accounting that helps determine the ending inventory value under the retail inventory method, comparing the cost of goods to their retail price.

Ending Inventory

The worth of items available for selling when an accounting period ends, determined by adding the starting inventory to purchases and then subtracting the cost of goods sold.