A Major Premise of a Socialist System Is

question 143

Multiple Choice

A major premise of a socialist system is:

• A) to make sure that those that 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:

Price Effect

The price effect is an economic term describing the impact of a change in a product’s price on its demand and supply.

Total Revenue

The total receipts a company receives from sales of goods or services before any expenses are subtracted.

Identical Products

Goods that are exactly the same in terms of quality, size, and features, making them indistinguishable from one another in the eyes of consumers.

Close Substitutes

Products or services that can serve as almost identical alternatives to one another, typically influencing consumer choice and market dynamics.