CA Foundation P4 · Chapter 1 · Question 8 of 15
Which of the following is NOT a feature of a socialist economy?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Consumer sovereignty determining what goods are produced
Explanation
In a socialist economy, the planning authority decides what to produce based on social priorities, so consumers do not exercise sovereignty through the market. Collective ownership, central planning and the absence of the profit motive are all features of socialism.
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