2. Discuss which of the economic system is better in delivering welfare to the society? What should be the role of government and business in the system that you consider desirable from the point view of economic welfare?
Answer: Socialism is much better than any other economic system is better in delivering welfare to the society. Socialist economics refers to the economic theories, practices, and norms of hypothetical and existing socialist system.
A socialist economic system is based on some form of social ownership of the means of production, which may mean autonomous cooperatives or direct public ownership: wherein production is carried out directly for use. Where markets are utilized for allocating inputs and capital goods among economic units, the designation market socialism is used. When planning is utilized, the economic system is designated a planned socialist economy. Non- market forms of socialism usually include a system of accounting based on calculation- in kind or a direct measure of labor-time as a means to value resources and goods.
The Role of government and Business in the system: A socialist economy is a system of production where goods and services are produced directly for use, in contrast to a capital economic system, where goods and services are produced to generate profit (and therefore indirectly for use). Goods and services would be produced for their usefulness, or for their use- value, eliminating the need for market induced needs to ensure a sufficient amount of demand for products to be sold at a profit. Production in socialist economy is therefore “planned” or “coordinated”, does not suffer from the business to the factors of production and not to the allocation of goods and services produced for consumption, which would be distributed through a market. The ownership of the means of production varies in different socialist theories. It can either be based on public ownership by a state apparatus: direct ownership by the users...