Exploitation and inequality are minimal under
Options
ASocialism
BCapitalism
CMixed economy
DNone of the above.
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Introduction to Business EconomicsMTP May 23Question 710 of 209
All Questions Correct Answer
✅ Option a — Socialism
All Options:
- ASocialism
- BCapitalism
- CMixed economy
- DNone of the above.
Detailed Solution & Explanation
To determine the correct answer, let's break down the key concepts:
• Exploitation and inequality refer to situations where individuals or groups are taken advantage of, often resulting in unequal distribution of resources or wealth.
• Socialism is an economic system where the means of production are owned and controlled by the community as a whole, aiming to reduce economic inequality and exploitation.
• In a socialist system, the focus is on equal distribution of wealth and resources, which minimizes exploitation and inequality.
• This is in line with the principles of socialism, which emphasizes fairness and equality.
The correct answer is socialism because it is designed to promote economic equality and reduce exploitation.
• In contrast, capitalism is often associated with a greater potential for exploitation and inequality due to the concentration of wealth and power among a few individuals.
• Mixed economy, while balancing elements of different systems, may still experience some level of exploitation and inequality, depending on its specific structure and policies.
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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