Question

What do you understand by socialist economy?

• A. An economy which is wholly controlled by government
• B. Social welfare is the main aim
• C. Both A and B
• D. None of these

Answer 1

The correct option is C Both A and B

C is the correct option.

A socialist economy means the production and distribution are owned, controlled and regulated by the public, either through the state or through cooperatives.

The basic motive is not to use the means of production for profit, but rather for the interest of social welfare.socialism has the greatest goal of the commonwealth.

Since the government controls almost all of society's functions, it can make better use of resources, labours and lands. Socialism reduces the disparity in wealth, not only in different areas but also in all societal ranks and classes.