Which economic system is least regulated?AcapitalismBsocialismCa mixed systemDcommunism
Question
Which economic system is least regulated?
- A. capitalism
- B. socialism
- C. a mixed system
- D. communism
Solution
To determine which economic system is least regulated among the options provided, we need to analyze the characteristics of each system:
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Capitalism (A): This system is characterized by private ownership of the means of production and the operation of market forces. While there can be regulations in place, capitalism fundamentally relies on free markets, implying less government intervention compared to the other systems.
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Socialism (B): In socialism, the government often plays a significant role in regulating the economy and may own key industries. This system typically emphasizes equality and redistribution of wealth, which involves more regulations.
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Mixed system (C): A mixed economy combines elements of both capitalism and socialism. It features both private ownership and government regulation, leading to a moderate level of regulation, usually higher than pure capitalism.
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Communism (D): This is a classless system where the government controls all means of production. There is significant regulation as the state dictates all economic activities.
Final Answer
Considering the analysis, the economic system that is least regulated is A. Capitalism.
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