In a economy, all the are owned by the State. In these economies, decisions on what to produce, how much to produce and for whom to produce is taken by the . These economies are also called economies. Only one sector exists and that is sector. The main advantages of this economic system are that the resources are used to produce only those goods and services which are needed by the and thus eliminate wasteful . Equal of income and wealth is possible. On the other hand, due to the lack of competition, firms may lose their and there may not be optimum utilisation of resources. There is less freedom of choice for the consumers as most of the decisions are taken by the government.