WORLD HISTORY

Detailed explanation-1: -It is not privately owned. All the people in the economy are equal and get the benefit. The production purpose of a socialist economy is to fulfill the customers’ needs and not to earn profits like in a capitalist economy. It ensures that the wealth is distributed equally across the economy.

Detailed explanation-2: -4] Equal Distribution of Income This is one of the main features of a socialist economy. The setup does not allow one person to accumulate a lot of wealth. So the gap between the rich and the poor is much narrower. And all their citizens enjoy equal opportunities and facilities like education, public healthcare, etc.

Detailed explanation-3: -Socialism does not emphasises on the centrality of community.

Detailed explanation-4: -In socialist economy, unlike capitalism, loan capital does not exist: by far the greater part of the money entering the credit system is socially-owned property; the rest is the personal property of the working people. These resources are made use of to serve socialist enterprises and the mass of working people.