A socialist economy is characterized by

A) an extensive reliance on markets to allocate final goods and services.
B) an extensive reliance on the profit motive to govern resource allocation decisions.
C) elimination of the problem of scarcity since all basic necessities are available to all citizens.
D) public ownership of productive resources.
E) high levels of unemployment and inflation.

Socialist Economy

An economic system where the production, distribution, and exchange of goods and services are controlled by the government with the aim of reducing inequality.

Public Ownership

The ownership of assets by the government or public entities rather than by private individuals or companies.

Productive Resources

The factors required for the production of goods and services, usually classified into land, labor, capital, and entrepreneurship.