World Economic Systems Questions
State ownership in a centrally planned socialist economy refers to the government's control and ownership of the means of production, distribution, and exchange. In this economic system, the state owns and operates key industries, such as manufacturing, energy, transportation, and banking. The government determines production levels, sets prices, and allocates resources based on the overall economic plan. State ownership aims to ensure that the economy serves the collective interests of the society rather than individual profit. It is a fundamental characteristic of centrally planned socialist economies, where the state plays a dominant role in economic decision-making and resource allocation.