Question

Deanne is a vocal critic of socialism. She likes to point out that in recent years the governments in many socialistic nations have cut back on government services and have reduced taxes. Deanne believes that this trend will ultimately result in all nations adopting pure capitalistic ideals. Recent evidence suggests that Deanne's views are essentially correct.
a. True
b. False

Answer 1

Answer: False

Explanation:

Socialism is a theory that posits that production, and distribution, of goods and services should be in charge of the government. This is quite different from capitalism which advocates for the individuals to be in charge.

Even though it is true that governments of many socialistic nations have cut back on government services and have reduced taxes, this doesn't mean that all nations are adopting pure capitalistic ideals according to Deanne.

She's incorrect because there are still some elements of socialism and government interference, hence, such economies are regarded as mixed economies as they've attributes of both capitalism and socialism.

Deanne's observations is untrue as government involvement in free market economies is being ignored by her.