How can Venezuela's economic system best be described during Hugo Chavez's years as president?

• A. A free-market capitalist economy with minimal state involvement
• B. A socialist-oriented economy with significant government intervention
• C. A traditional economy based primarily on subsistence agriculture
• D. A command economy with no private ownership of resources

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the key characteristics of different economic systems: free-market capitalist economies emphasize minimal government intervention and private ownership; traditional economies rely on subsistence agriculture and customs; command economies involve state ownership and central planning; socialist-oriented economies combine government intervention with some private ownership and social welfare policies.
2. Step 2: Review the economic policies implemented by Hugo Chavez during his presidency, focusing on his emphasis on redistributing wealth, nationalizing key industries, and increasing government control over the economy.
3. Step 3: Analyze how Chavez's policies align with the features of a socialist-oriented economy, such as significant government intervention in resource allocation and social programs aimed at reducing inequality.
4. Step 4: Compare Chavez's economic system to the other options, noting that it was neither a free-market capitalist economy with minimal state involvement nor a purely command economy with no private ownership, nor a traditional subsistence economy.
5. Step 5: Conclude that Venezuela's economic system under Hugo Chavez is best described as a socialist-oriented economy with significant government intervention.