Correct Response: D. A socialist economy is based on a belief in shared ownership of means of production, distribution, and exchange. In a socialist economy, the government controls the process of production, and therefore has greater control of that nation's industries. Reduced barriers to free trade is a feature of a capitalist economy not a socialist economy, as capitalism is opposed to government intervention in the economy (A). Lower taxes on businesses and workers is another feature of capitalism, since capitalists view taxes as government intervention (B). Capitalism offers greater personal freedom in the sense of allowing individuals to own private property, operate businesses, and accumulate wealth (C).
