Question

Who solves the central problem in a socialist economy?

Answer 1

Explanation:

Criticism of socialism refers to any critique of socialist models of economic organization and their feasibility as well as the political and social implications of adopting such a system. Some criticisms are not directed toward socialism as a system, but rather toward the socialist movement, parties or existing states.

Answer 2

Answer:

In a mixed economy the central problems are solved by combining central planning with a modified price mechanism

Explanation:

In a socialist economy the basic economic problems are solved through plan­ning. The government appoints a Central -Planning Authority which makes economic decisions.

(i) The decision of what to produce and in what quantities is carried out on the basis of national priorities.

(ii) In a socialist economy the main objective is to ensure full utilization of resources. Therefore planning authority keeps this objective in mind while choosing a technique of production.

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