One of the fundamental differences between a capitalist an 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 performs 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 equal in the socialist economy is distributed in the socialist economy, this is not so in the capitalist economy