Questions what is the main features of the socialist economy?

The need for the transition from a command economy to a market economy?

Key words: inflexibility, efficiency, innovation

A command economy occurs when the government control the main means of production. The government set prices and determines what is produced. A market economy is fundamentally different. It shifts ownership of the means of production to private individuals and firms. Prices and output are determined by market forces. To make the shift from a command economy to a free market economy requires

Privatisation of state-owned industries

Removal of price controls

Removal of tariff barriers

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