Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Capitalism promotes private ownership and income inequality, while socialism advocates for collective ownership and equity.
B
Capitalism seeks to eliminate all forms of inequality, whereas socialism encourages competition.
C
Capitalism relies solely on government intervention, while socialism operates independently of it.
D
Capitalism is focused on equal wealth distribution, while socialism prioritizes individual profit.
Understanding the Answer
Let's break down why this is correct
Answer
Capitalism and socialism differ mainly in how they handle wealth and resources. In capitalism, individuals or businesses own property and make profits, which often leads to unequal wealth distribution since some people can earn much more than others. For example, a successful entrepreneur might become very wealthy, while others may struggle to get by. In contrast, socialism emphasizes shared ownership and aims for more equal distribution of wealth, meaning the government often plays a role in managing resources and providing for everyone. This can help ensure that everyone's basic needs are met, but it may limit individual wealth accumulation compared to capitalism.
Detailed Explanation
Capitalism allows people to own businesses and keep profits. Other options are incorrect because Some think capitalism tries to make everyone equal, but it actually allows for competition; This suggests capitalism doesn't need government help, but it often does.
Key Concepts
Wealth Distribution
Economic Systems
Income Inequality
Topic
Capitalism vs. Socialism
Difficulty
hard level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.