ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Both socialism and communism use central planning as a way of achieving other social and political goals, but usually operate as part of a mixed economy.

Detailed explanation-2: -The two general types of planned economies are socialist economies and communist economies. Both of these types of economies are viewed as centrally planned and allow for very little free choice by citizens or consumers.

Detailed explanation-3: -Socialist economies rely on either the government or worker cooperatives to drive production and distribution.

Detailed explanation-4: -A socialist economic system is characterized by social ownership and operation of the means of production that may take the form of autonomous cooperatives or direct public ownership wherein production is carried out directly for use rather than for profit.

Detailed explanation-5: -In socialism, government plays significant role in decision making. Thus, government has complete control over economic activities like distribution, exchange, consumption, investment and foreign trade etc.