Question

Which of the following does the government do in a socialist country?
O
O
O
A. Guarantee property rights.
B. Ensure free choice for consumers.
c. Protect the profit motive.
O
D. Set prices for goods and services.

Answer 1

It’s D. Socialist governments control the entire economy.

Answer 2

The correct answer is D) Set prices for goods and services

The government in a socialist country does the following: Set prices for goods and services.

The government of a socialist country does exactly the opposite of what a government does in a capitalist country. Capitalism favors the free market, private property, entrepreneurship, and free trade. The opposite happens in a socialist economy. The government controls the means of production. It decides what to produce when to produce, how much to produce, and the price od the products. In a socialist country, there is no private property.