JAMB Economics 1997 Question 4

One of the fundamental differences between a capitalist and a socialist economy is that while

1. A.the former is characterized by complete government ownership of resources, the latter is characterized by complete private ownership
2. B.in the former, prices act as signals in the allocation of resources, it is the central authority that performs this function in the latter
3. C.taxes are levied in a capitalist economy, there is no taxation in a socialist economy
4. D.income and wealth are equally distributed in the socialist economy, this is not so in a capitalist economy.