Question

Write any four merits of Socialist Economy.

Answer 1

Merits of socialist economic system: Following are the main merits of a socialist economic system.

(i) Optimum utilization of resource: Due to the central planning in socialist system the optimum use of the factors of production becomes possible. The resources, by planning are shifted from the areas of less productivity to the areas having more productivity. Along with this the economic activities of the different sectors of the economy are co-ordinated. It makes the utilization of factors optimum.

(ii) Economic stability: Due to central planning in socialist system between the areas of consumption and production both mutual co-ordination is found. Therefore the situation of excessive production or less production deos not exist. As a result of this economic stability is maintained in the economy.

(iii) Economic equality: In the socialistic system there is no place for private property, laws of inheritance and tendency of earning prodict. Property and factors are owned by the state. The job is given to people with their ability and efficiency. So economic equality is found in it.

(iv) End of class conflict: Due to the ownership of the government on the factors of production in socialism, division of society on the basis of property and wealth is not found. In it, there exist only one class i.e., laboure class. Therefore there is no possibility of class-conflict.