With regard to socialist economy, which of the following statement is correct? (1) The factors of production are privately owned (2) Economy is not regulated by the government Select the correct answer

The correct answer is D. Neither 1 nor 2.

In a socialist economy, the factors of production are owned and controlled by the state, either directly or through state-owned enterprises. The economy is also regulated by the government, which sets prices, wages, and production quotas.

In a capitalist economy, the factors of production are privately owned and controlled by individuals or businesses. The economy is not regulated by the government, except to ensure fair competition and protect consumers.

Therefore, neither statement 1 nor statement 2 is correct about a socialist economy.