A major disadvantage of a socialist economy is that
A. corruption is rampant B. consumer's sovereignty is lost C. income inequality is entrenched D. there is high level of unemployment
Correct Answer: A
Explanation
One of the major criticisms of socialism are that socialist countries have a tendency to develop too many layers of bureaucracy, which leads to corrupt practices. The government controls much of the economy's resource. They decides the whats, whens, and hows of production.
