Final answer:
State socialism is a system where the government owns and controls all economic activities, while democratic socialism combines elements of socialism and democracy with decentralized decision-making.
Step-by-step explanation:
State socialism, also known as central planning socialism, is an economic system in which the government owns and controls the means of production, distribution, and exchange. The government plans and directs all economic activities, including setting production quotas, determining prices, and allocating resources. This type of socialism is often associated with countries like the former Soviet Union and China under Mao Zedong.
Democratic socialism is an economic and political system that combines elements of socialism and democracy. In democratic socialism, the means of production are owned and controlled by the workers or the community as a whole, rather than by the government. Decision-making is decentralized and democratic principles are upheld. Countries like Sweden and Norway are often cited as examples of democratic socialism.