Unlike a socialist, a capitalist believes that competition will result in:

• A. greater efficiency and innovation in the allocation of resources
• B. elimination of private property rights
• C. increased government control over production and prices
• D. equal distribution of wealth among all members of society

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the key difference between capitalist and socialist economic systems. Capitalism emphasizes private ownership and market competition, while socialism emphasizes government control and redistribution.
2. Step 2: Recognize that in capitalism, competition among firms and individuals is believed to drive efficiency, as businesses strive to minimize costs and maximize profits.
3. Step 3: Note that competition also encourages innovation, as firms seek to develop new products and technologies to gain an advantage over rivals.
4. Step 4: Contrast this with socialism, where government control may limit competition and focus more on equal distribution rather than efficiency or innovation.
5. Step 5: Conclude that the capitalist belief is that competition leads to greater efficiency and innovation in resource allocation, rather than elimination of private property, increased government control, or equal wealth distribution.