In the socialist economy means of production are owned and managed by the government. Government controls all the economic activities.
Features of Socialist Economy:
(a) Means of production are owned by the government.
(b) The use of resources is carried out through a plan.
(c) Social welfare is the chief motivation force behind all economic activities,
(d) Prices of goods and services are determined by the government.
(e) The economy aims at providing equal opportunities of employment for all.