ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Socialism is an economic and political system based on public or collective ownership of the means of production that emphasizes economic equality.

Detailed explanation-2: -Socialists generally aim to achieve greater equality in decision-making and economic affairs, grant workers greater control of the means of production and their workplace and to eliminate exploitation by directing the surplus value to employees.

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. Essential services like healthcare, education, and public transportation are administered for free by the government and funded through taxation.

Detailed explanation-4: -Supporters of a capitalist system point to the higher production, greater wealth, and higher standard of living displayed by capitalist countries such as the United States.

Detailed explanation-5: -A centrally planned economy is the one in which economic activities (production, consumption and exchange) are governed by the government. Market economy is the one in which economic activities (production, consumption and exchange) are governed by the market forces of supply and demand.