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

• A.The former is characterized by complete government ownership of resources, the latter is characterized by complete private ownership
• B.In the former, prices act as signals in the allocation of resources, it is the central authority that perform this function in the latter
• C.Taxes are levied in a capitalist economy. there is no taxation in a socialist economy
• D.Income and wealth are equally distributed in the socialist economy, this is not so in a capitalist economy