Distribution of wealth and income. There is a greater equality in the distribution of wealth and income in social economies. Since the factors of production, with the exception of labour, are owned by the state, it is impossible for anyone Lo derive incomes from hiring out land or capital.

There are no private entrepreneurs who derive profits from combining the factors of production.

Provision of public and merit goods. Since production is not undertaken for profit purposes, there is a greater likelihood of the provision of both public goods and merit goods [merit goods are those which add to the quality of life). The government simply has to issue a directive to ensure production.

Provision of demerit goods. The production and consumption of demerit goods can tie prevented.

Relatively stable economies. The social economies are generally stable because economic management is entirely in the hands of the government, and consumers have far loss power to influence production. For instance, if consumer demand for a particular product falls, it will not necessarily lead to unemployment in that industry. The planners might initially maintain production at existing levels and gradually reduce it over time by not replacing workers who leave the industry.