Which of the following best describes collectivization in the context of economics?

• A. The process of transferring privately owned farms and resources into collective ownership, typically managed by the state.
• B. The implementation of progressive taxation to redistribute wealth.
• C. The privatization of state-owned enterprises to encourage competition.
• D. The deregulation of markets to allow for free trade between nations.

Answer: (A)

Verified step by step guidance

1. Understand the term 'collectivization' in economics, which refers to the process where privately owned assets, especially farms and resources, are transferred into collective ownership.
2. Recognize that collectivization typically involves the state or a collective body managing these resources rather than individual private owners.
3. Compare the given options to identify which one aligns with this definition: transferring private farms and resources into collective ownership managed by the state.
4. Eliminate options that describe different economic concepts such as progressive taxation (redistribution of wealth), privatization (transfer from state to private ownership), and deregulation (removal of government controls).
5. Conclude that the best description of collectivization is the process of transferring privately owned farms and resources into collective ownership, typically managed by the state.