Write three points in favour of the socialist economy.

1.	Write three points in favour of the socialist economy.
Answer» Following are three important points favouring the socialist economy:- Optimum use of economic resources : In socialist economy, all the natural and human resources are used by centralized planning. In socialist economy, the objective of centralized planning is maximizing social welfare and social security. Freedom from trade cycles : Socialist economy is a planned economy, therefore ups and downs are less in this economy as compared to free-market economy. The government uses the resources in a planned way, while keeping in mind the objective of social security and maximum welfare. Therefore, there is less possibility of upsurge or slump in economy.

Answer»

Following are three important points favouring the socialist economy:-

Optimum use of economic resources : In socialist economy, all the natural and human resources are used by centralized planning. In socialist economy, the objective of centralized planning is maximizing social welfare and social security.
Freedom from trade cycles : Socialist economy is a planned economy, therefore ups and downs are less in this economy as compared to free-market economy. The government uses the resources in a planned way, while keeping in mind the objective of social security and maximum welfare. Therefore, there is less possibility of upsurge or slump in economy.

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