The essential difference between capitalism and socialism is that ?
Correct answer: B. capitalism relies on the market to make economic decisions and socialism uses central planning
- A. capitalism exploits the worker and socialism exploits the property owner
- B. capitalism relies on the market to make economic decisions and socialism uses central planning
- C. capitalism grows through rent seeking and socialism grows through government direction
- D. capitalism relies on consumer satisfaction to dictate choices and socialism relies on producer satisfaction
Explanation
Capitalism mainly coordinates production through market prices and private decisions, whereas socialism relies on central planning to allocate resources. The other choices describe possible effects or goals, not the essential institutional difference.
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