Question

Give two principle features of a socialist economy.

Explain any two features of a socialist economy.

Answer 1

1. Social Property: In a socialist economy, all property and means of production (such as land, factories, banks, trade) belong to society as a whole and are owned by the state. Private property is totally abolished.
2. Central Planning and Government as the Only Producer: The government controls the production of goods and solves all the basic economic problems (what to produce, how to produce, for whom to produce) through a predetermined central plan. There is no competition since the government is the sole producer.