📚 Learning Guide
Capitalism vs. Socialism
easy

In which economic system is government intervention most likely to occur to regulate the economy?

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Learning Path

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Choose the Best Answer

A

Capitalism

B

Socialism

C

Free Market

D

Mixed Economy

Understanding the Answer

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Answer

In a socialist economic system, government intervention is most likely to occur to regulate the economy. This is because socialism emphasizes collective ownership and the idea that the government should manage resources and services for the benefit of all citizens. For example, in a socialist system, the government might control healthcare and education to ensure that everyone has access, regardless of their financial situation. This contrasts with capitalism, where the market operates with less government control, allowing individuals to own businesses and make economic choices independently. Overall, socialism seeks to reduce inequality and provide basic needs for everyone, which often leads to more government involvement in the economy.

Detailed Explanation

In socialism, the government plays a big role in the economy. Other options are incorrect because Many think capitalism means no government help at all; Some believe a free market means no rules.

Key Concepts

government intervention
Topic

Capitalism vs. Socialism

Difficulty

easy level question

Cognitive Level

understand

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