CA (Chartered Accountant) Foundation Business Economics: Questions 1 of 642

Question MCQ▾

Exploitation and inequality are minimal under:

Choices

Choice (4)Response

a.

Socialism

b.

Capitalism

c.

Mixed economy

d.

Question does not provide sufficient data or is vague

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Answer

a.

Explanation

Main types of economy

Table of the Main Types of Economy
CAPITALISMSOCIALISMMIXED
Individual and group ownershipGovernment ownershipPrivate as well as government ownership
Freedom of enterprisegovernment monopolyFreedom of enterprise

(subject to reserved industries)

Freedom to choice by consumersAbsence of consumer choiceFreedom to choice by consumers

(in private sector)

Exploitation of labourLack of exploitationExploitation of labour

(in private sector)

Income inequalityIncome equalityIncome inequality

(in private sector)

Profit motiveService motiveProfit as well as service motive

Hence, exploitation and inequality is minimal under socialism economy.

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