ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Command economy is a system where the government decides goods production, process, quantity, and price in a country. In this system, the government also manages income and investments.

Detailed explanation-2: -A command economy is an economic system where the government has control over the production and pricing of goods and services.

Detailed explanation-3: -A command economy is a system in which a central government makes all economic decisions. Either the government or a collective owns the land and the means of production.

Detailed explanation-4: -Alternatively, a command economy is organized by a centralized government that owns most, if not all, businesses and where government officials direct all the factors of production. East Germany, North Korea, and the former Soviet Union are all examples of command economies.

Detailed explanation-5: -Command systems are also known as: communism. A fundamental difference between the command system and laissez-faire capitalism is that, in command systems: the division of output is decided by central planning rather than by individuals operating freely through markets.