Socialist economy does have:
Options
ARight to work & minimum standard to living
BAbsence of competition
CRight to private property
DBoth a and b
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Introduction to Business EconomicsMTP Apr 21Question 654 of 209
All Questions Correct Answer
✅ Option d — Both a and b
All Options:
- ARight to work & minimum standard to living
- BAbsence of competition
- CRight to private property
- DBoth a and b
Detailed Solution & Explanation
• A socialist economy is characterized by social ownership and democratic control of the means of production. Its primary goal is to achieve social equality and welfare for all citizens.
• Option (A) "Right to work & minimum standard to living" is a core feature of a socialist economy. In such systems, the state often guarantees employment and provides essential services like healthcare, education, and housing to ensure a basic standard of living for everyone. This aligns with the welfare-oriented nature of socialism.
• Option (B) "Absence of competition" is also a characteristic of a purely socialist economy. Since the state or collective owns and controls most industries, the profit motive and competitive rivalry seen in capitalist economies are largely absent. Production is planned to meet societal needs rather than to compete for market share.
• Therefore, since both (A) and (B) are features of a socialist economy, option (D) "Both a and b" is the correct answer.
• Option (C) "Right to private property" is incorrect. While some personal property might exist, the right to private ownership of productive assets (like factories, land for large-scale production) is significantly curtailed or absent in a socialist economy. The means of production are primarily owned by the state or community. This distinguishes it sharply from a capitalist economy where private property rights are fundamental.
About This Chapter: Introduction to Business Economics
Paper
Paper 4: Business Economics
Weightage
5%
Key Topics
Meaning, Scope, Price Mechanism
This chapter lays the groundwork for understanding Business Economics as a discipline. It covers the meaning, scope, and nature of economics — including key distinctions like Microeconomics vs Macroeconomics, Positive vs Normative economics, and the fundamental economic problem of scarcity. Students learn how businesses use economic principles for decision-making in a competitive marketplace.
View Official ICAI SyllabusExam Strategy Tip
Focus on definitions and distinctions between concepts. Questions often test whether you understand the difference between Micro and Macro, or Positive and Normative statements.
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