Exploitation and inequality are minimal under
Options
ASocialism
BCapitalism
CMixed economy
DNone of the above.
For any discrepancies in this question, email contact@cadada.in
Introduction to Business EconomicsMODULEQuestion 711 of 209
All Questions Correct Answer
✅ Option a — Socialism
All Options:
- ASocialism
- BCapitalism
- CMixed economy
- DNone of the above.
Detailed Solution & Explanation
• The question asks under which economic system exploitation and inequality are minimal. We need to analyze the core principles of each system.
• Socialism is an economic system where the means of production (factories, land, resources) are owned and controlled by the community as a whole, often through the state. The primary goal is social welfare and equality, not profit maximization.
• In a socialist system, the government or collective aims to distribute resources and wealth more equitably among citizens. This often involves providing essential services like healthcare and education universally and implementing policies to reduce income disparities. By eliminating private ownership of major industries and focusing on collective good, the potential for exploitation of labor for private profit is significantly reduced.
• Capitalism, on the other hand, is characterized by private ownership of the means of production and operation for profit. While it can foster innovation and economic growth, it inherently allows for significant wealth accumulation by a few and can lead to substantial income inequality and potential exploitation of labor if not regulated.
• A mixed economy combines elements of both capitalism and socialism. While it includes government intervention to address market failures and provide social safety nets, it still retains private ownership and market mechanisms, meaning some level of inequality and potential for exploitation can persist, though often less than pure capitalism.
• Therefore, based on its fundamental principles of collective ownership and equitable distribution, socialism is designed to minimize exploitation and inequality.
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.
Related Comparison Tables
More Questions from Introduction to Business Economics
A study of how increases in the corporate income tax rate will affect the nation unemployment rate is an example of
In a ______ the producer is free to set up any type of firms produce goods and services of his choice.
In the beginning the word economics was
In Economics, we use the term scarcity to mean;
In a free market economy, allocation of resources is determined by
If there is no central planning authority to make the fundamental economic decisions and thus to allocate productive resources, how can then free enterprise or capitalist economy solve its central problems?
Ready to Master Introduction to Business Economics?
Practice all 209 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.
Start Practicing — It's Free