Business EOPA Practice Exam 2025 – Complete All-in-One Guide for Exam Success!

Socialism is an economic and political system where the means of production, such as factories and resources, are owned and controlled by the government or society as a whole. This approach is based on the idea that collective ownership and democratic management of the economy can lead to a more equitable distribution of wealth and reduce the disparities typically seen in capitalist systems.

In socialism, the goal is to ensure that production serves the needs of the community rather than the profit motives of private capitalists. This often involves significant government intervention in economic activities, including planning and regulating industries to meet the public's needs. The philosophy hinges on the belief that by taking control away from private individuals and giving it to the state or community, resources can be allocated more fairly and efficiently.

The other options do not align with the core principles of socialism. Private citizens typically own and control production in a capitalist system, while businesses and corporations operate on profit motives rather than collective ownership. International entities, although they may influence global economies, do not represent the socialistic ideal of ownership and control being vested in a centralized government or the collective society.