Socialist Economy is a type of economic system where the means of production, distribution, and exchange are owned and controlled by the state or the community as a whole. In a socialist economy, the government plays a central role in planning and regulating economic activities to promote social welfare and reduce inequality.

Explanation:

Definition of Socialist Economy:
A socialist economy is characterized by collective ownership of the means of production, such as factories, land, and resources, as opposed to private ownership in a capitalist economy. The goal of a socialist economy is to eliminate class struggle and create a more equitable society by ensuring that wealth and resources are distributed in a fair and just manner.

Key features of a Socialist Economy:
1. Collective Ownership: In a socialist economy, the means of production are owned and controlled by the state or the community as a whole. This means that resources and industries are managed and operated for the benefit of society, rather than for private profit.

2. Central Planning: In a socialist economy, the government plays a central role in planning and regulating economic activities. It determines production targets, allocates resources, sets prices, and coordinates economic activities to achieve social goals.

3. Redistribution of Wealth: A key objective of a socialist economy is to reduce inequality and ensure a more equitable distribution of wealth. This is often achieved through progressive taxation, welfare programs, and social safety nets that provide support to the less fortunate members of society.

4. Social Welfare: Socialist economies prioritize the provision of essential goods and services, such as healthcare, education, housing, and public infrastructure, to all members of society. This is seen as a fundamental right and is typically provided by the state.

Differences from other Economic Systems:

Mixed Economy: A mixed economy combines elements of both socialism and capitalism. While the government plays a significant role in a mixed economy, private individuals and businesses also have the freedom to own and operate enterprises. In a socialist economy, there is limited or no private ownership of the means of production.

Planned Economy: A planned economy is an economic system where the government controls and directs economic activities through central planning. While a socialist economy often employs central planning, not all planned economies are socialist. For example, some planned economies may be authoritarian or communist in nature, with little regard for social welfare or equity.

Capitalist Economy: A capitalist economy is characterized by private ownership of the means of production and the pursuit of profit. In contrast, a socialist economy aims to prioritize social welfare and reduce inequality, rather than maximizing individual profits.

Conclusion:
In conclusion, a socialist economy is a distinct economic system characterized by collective ownership, central planning, and a focus on social welfare and equity. It differs from mixed, planned, and capitalist economies in terms of ownership, control, and objectives.

I think B I correct . bcoz it given in icai book ques also