Question

Write any four demerits of socialist economic system.​

Answer 1

Explanation:

Demerits of Socialist Economy:

Economists like Robbins, Maurice Dobb, Georg Halm etc. have criticised the socialist economy on the following grounds:

(i) Loss of Consumer Sovereignty:

A consumer has no choice of his own, he acts as a mere slave under this system. Government produces goods and services keeping in view the needs of the people.

(ii) Less Democratic:

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Answer 2

Explanation:

The government is virtually the owner of almost every sector. Hence, all the individual producers are also more according to the plan targets. Therefore, the competition among the producers is almost nil. Hence, very less money is spent on wasteful advertisement.