8
QuizMultiple Choice

Socialism and Communism

Question 8 • World History 1A - Mr.Sauceda (Fall 2026)

In a socialist economy, what typically influences the prices of national goods and services in key industries?

Answer
A
the government of the country
B
the law of supply and demand
C
a committee of business leaders
D
a group of politicians from all parties

Explanation

In a socialist economy, the government typically directs key industries and sets or strongly influences the prices of their goods and services. The law of supply and demand has less influence over these prices than it does in a market-based economy, so the correct choice is the government of the country.

AI-written and checked against the verified answer.

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