Money

  In a socialist economy, the central authority owns and controls the means of production and distribution. All mines, farms, factories, financial institutions, distributing agencies (such as internal and external trade, shops, stores, etc.) means of transport and communications, etc., are owned, controlled and regulated by government departments and state corporations. Therefore, the pricing process in a socialist economy does not operate freely but works under the control and regulation of the central planning authority. Theoretically, the role of money in a socialist economy is different from that in a capitalist economy. Features of Socialism : The main features of this system are detailed below. (1) Public Ownership: A socialist economy is characterised by public ownership of the means of production and distribution. There is collective ownership whereby all mines, farms, factories, financial institutions, distributing agencies (internal and external trade, shops, stores, etc....