16
QuizMultiple Choice

New Economic Theories

Question 16 • SS221 World History/Geography A

In terms of production, what best describes the difference between capitalism and socialism?

Answer
A
Capitalism is a system in which goods are made by private businesses, but socialism stresses government control over production.
B
Capitalism is a system in which the government controls production, but socialism stresses production by private businesses.
C
Capitalism is a system in which people pursue their own self-interests, but socialism stresses an equal distribution of wealth.
D
Capitalism is a system in which government should “plan” the economy, but socialism stresses that free market dictates production.

Explanation

The key difference is who owns or controls production. Under capitalism, private businesses generally produce goods and services, while socialism gives the government or society greater control over production. Choice A states this distinction. Choice C describes broader goals often associated with the systems, but it does not directly answer the question about production.

AI-written and checked against the verified answer.

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