In a socialist economic system, decisions relating to the fundamental economic problems are taken by

Step 1: Analyze the question The question asks who makes decisions about the fundamental economic problems in a socialist economy. These problems are: what to produce, how to produce, for whom to produce, and how to allocate resources.

Step 2: Explain the concept Economic systems differ mainly in who controls resources and makes these decisions:

• Capitalist (free market) economy: Individuals and private firms decide, guided by the price mechanism (demand and supply).
• Socialist (command/planned) economy: The state owns or controls the major means of production, and a central planning authority makes the decisions.
• Mixed economy: Decision-making is shared between the government and the private sector. Nigeria is an example.

Step 3: Work through the options

• A. Academicians: they may advise, but they do not hold decision-making power.
• B. Government: it owns the major resources and uses central planning to decide what, how, and for whom to produce. This fits.
• C. Individuals: this describes capitalism, not socialism.
• D. Judiciary: its role is to interpret laws, not to make economic decisions.
• E. Manufacturers: they are private producers, typical of capitalism.

Step 4: Answer The correct answer is B. Government.

Tip: Link each system to its decision-maker:

• Capitalism → individuals and the price mechanism
• Socialism → government and central planning
• Mixed → both

If you see the words "socialist," "command," or "planned," think government.