Question

Identify the correct characteristics related to major economic system. A. In communism, there is private ownership of the means of production.
B. In capitalism, accumulation of profits is the main incentive.
C. In socialism, collective ownership of the means of production exists.
D. In countries like Canada and Mexico there is communal ownership of all the property. Choose the correct answer from the options given below:

• A. A and B Only
• B. A and D Only
• C. B and C Only
• D. C and D Only

Hint:

Capitalism focuses on profit, while socialism supports collective ownership.

Answer 1

The Correct Option is C

Concept:
Economic systems differ on the basis of ownership, production, and distribution of resources.

Step 1:
Communism does not support private ownership of means of production; resources are collectively owned. \[ A \text{ is incorrect} \]

Step 2:
In capitalism, earning profit is the major motive of economic activity. \[ B \text{ is correct} \]

Step 3:
Socialism supports collective or state ownership of major means of production. \[ C \text{ is correct} \]

Step 4:
Canada and Mexico follow mixed economies, not complete communal ownership systems. \[ D \text{ is incorrect} \]

Step 5:
Hence, the correct statements are: \[ B \text{ and } C \text{ Only} \] \[ \boxed{\text{(3) B and C Only}} \]