📚 Learning Guide
Capitalism vs. Socialism
medium

Which of the following scenarios best represents the principles of socialism?

Master this concept with our detailed explanation and step-by-step learning approach

Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

A government regulates industries to ensure basic needs are met for all citizens, providing healthcare and education at no cost.

B

A private company sets prices for goods based on supply and demand without government intervention, maximizing profits.

C

Individuals are allowed to own multiple businesses and accumulate wealth with minimal restrictions from the government.

D

A country incentivizes competition among businesses to drive innovation and improve consumer choices.

Understanding the Answer

Let's break down why this is correct

Answer

Socialism is an economic system where the government or the community owns and controls the means of production, distribution, and exchange, aiming for equal wealth distribution among the people. In a socialist scenario, everyone works together to ensure that basic needs like healthcare, education, and housing are provided for all, rather than being based on individual wealth. For example, if a country decides to provide free healthcare to all its citizens, regardless of their income, this shows the principle of socialism in action. Unlike capitalism, where individuals can gain wealth based on their efforts and investments, socialism focuses on sharing resources to reduce inequality. This approach helps ensure that everyone has access to essential services and a decent quality of life.

Detailed Explanation

In socialism, the government helps everyone by providing basic services like healthcare and education for free. Other options are incorrect because This option shows a system where businesses set prices freely to make money; Here, people can own many businesses and keep their wealth.

Key Concepts

Socialism
Capitalism
Economic Systems
Topic

Capitalism vs. Socialism

Difficulty

medium 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.