One of the fundamental difference 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 resource; it is the central authority that performs this function in the latter.
• C.Taxes are levied in a capital economy; there is not taxation in a socialist economy
• D.Income and wealth are equally distributed in the socialist economy, this is not so in a capitalist economy