ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In a Socialist Economy, the government has complete control over the production and distribution of goods and services.

Detailed explanation-2: -In socialist economies, important economic decisions are not left to the markets or decided by self-interested individuals. Instead, the government-which owns or controls much of the economy’s resources-decides the whats, whens, and hows of production. This approach is also referred to as central planning.

Detailed explanation-3: -In socialism, factors of production are under complete government control. The government takes all the important economic decisions and looks to answer the three most important economic questions.

Detailed explanation-4: -Solutions to the basic problems under a socialist system The basic problems of an economy can be solved either by the decisions of the Government or by the Market through interactions of buyers and sellers.

Detailed explanation-5: -Socialism and the Command Economy Market-based socialism is described below. In socialist countries, the state centralizes and controls economic decisions. A dictator or central planning committee decides what goods will be made, who will make it, how much to make, and who will buy it. The state does not control labor.