Q.Which among the following statements that describe the nature of Soviet economy is wrong?

The Soviet economy was built on socialist ideology, which meant that the State owned and controlled all major factors of production — land, capital, and industrial enterprises. Central planning was the core mechanism; the State decided what to produce, how much to produce, and at what prices goods would be sold. This left very little room for individual economic choice.

• (a) is correct: socialism was indeed the dominant ideology.
• (b) is correct: the State owned and controlled the factors of production.
• (d) is correct: every major aspect of the economy was planned and controlled by the State.

The statement that is wrong is (c). Under the Soviet system, people did not enjoy economic freedom — they could not freely choose what to produce, where to work, or what to buy, because the State made all those decisions.

The Soviet Union, from its founding in 1917 until its collapse in 1991, operated under a radically different economic model than the capitalist West. This system, often called a command economy or centrally planned economy, was built on the ideological foundation of Marxism-Leninism. The core belief was that private ownership of factories, land, and resources led to exploitation of workers. Therefore, the state — acting on behalf of the proletariat — would own and manage everything.

Let's examine each statement in the question against this historical reality.

Statement (a): Socialism was the dominant ideology. This is entirely correct. The Soviet state was explicitly socialist. The Communist Party of the Soviet Union (CPSU) held a monopoly on power and its entire justification for rule was the construction of a socialist society, eventually leading to communism. Every policy, every five-year plan, and every economic decision was framed in the language of socialist ideology. There was no competing political or economic philosophy permitted.

Statement (b): State ownership/control existed over the factors of production. Again, this is accurate. The "factors of production" — land, capital (machinery, factories, infrastructure), and natural resources — were almost entirely owned by the state. Collective farms (kolkhozy) were not privately owned by farmers; they were state-controlled agricultural enterprises. Private businesses were virtually non-existent after the 1920s. The state was the sole employer, the sole landlord, and the sole investor.

Statement (c): People enjoyed economic freedom. This is the statement that is wrong. In a market economy, economic freedom means the ability to choose your own job, start a business, decide what to produce or consume, and negotiate wages. In the Soviet Union, none of these were freely available. The state assigned jobs to university graduates, controlled wages through central planning, decided what goods would be produced and in what quantities, and set prices artificially. Consumers had very limited choice — you bought what was available in state stores, not what you necessarily wanted. There was no right to strike, no independent trade unions, and no private enterprise. Economic life was rigidly controlled from the top.

Statement (d): Every aspect of the economy was planned and controlled by the State. This is correct. The Soviet economy was run through a system of central planning, most famously through the "Five-Year Plans" (Gosplan). The central planning agency decided what to produce, how much to produce, where to produce it, what inputs to use, what wages to pay, and what prices to charge. This planning covered everything from steel production to the number of shoes manufactured to the allocation of grain. There was no market mechanism; the plan was law.