Paper 1 · November 2018 · Economic Systems
Under a socialist economic philosophy, the means of production are
Ashared equally between firms and foreign investors
Bowned by the state on behalf of society
Cowned by individual entrepreneurs for profit
Dallocated entirely by supply and demand
Explanation
Socialism rests on collective or state ownership, with a central plan deciding what, how and for whom to produce, and output judged by social welfare rather than private profit. Private ownership driven by the profit motive and allocation by market forces are the capitalist alternative.
Derived from ZIMSEC Business Enterprise Skills Paper 1, Nov 2018, Q1