ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A socialist economic system is characterized by social ownership and democratic control of the means of production.

Detailed explanation-2: -Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society. The essential feature of capitalism is the motive to make a profit.

Detailed explanation-3: -In a purely socialist economy, the collective owns and controls the means of production; personal property is allowed, but in the form of consumer goods.

Detailed explanation-4: -A socialist economic system can also be called as command economy, centrally planned economy or controlled economy because the means of production and distribution are owned, controlled and regulated by the public, either through the state or through cooperatives.