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For what purpose are goods and services produced in a socialist economy?

A. profits
B. their usefulness
C. to create demand
D. to meet all consumer needs

1 Answer

4 votes

Answer: To meet all consumer needs

Step-by-step explanation: In a socialist economy good and services are produces for direct use. Unlike a capitalist economy where goods and services are produced to earn profits. The purpose of producing goods in a socialist economy is to utilise the economy's scarce resources in a way that maximum consumer needs can be satisfied.

Thus, option D- to meet all consumer needs is the correct choice.

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