In the context of economics and political systems, what is an oligarchy?

• A. A system where all citizens have equal power in decision-making.
• B. A system where a small group of people holds all the power and makes decisions for the society.
• C. A system where a single individual holds absolute power.
• D. A system where power is inherited through family lineage.

Answer: (B)

Verified step by step guidance

1. Understand that the question is asking for the definition of an oligarchy within economics and political systems.
2. Recall that an oligarchy is a form of power structure where decision-making authority is concentrated in the hands of a small group of people.
3. Recognize that this small group holds significant control over political and economic decisions, often excluding the broader population from meaningful participation.
4. Differentiate oligarchy from other systems such as democracy (where all citizens have equal power), autocracy (where a single individual holds power), and monarchy (where power is inherited).
5. Conclude that the correct definition of an oligarchy is: a system where a small group of people holds all the power and makes decisions for the society.