ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Cuba, North Korea, and the former Soviet Union all have command economies.

Detailed explanation-2: -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-3: -Communist countries, particularly Russia and China, decided on a centrally planned economy (aka command economy). The centrally planned economy had the following major attributes: The government owns all means of production, which is managed by employees of the state.

Detailed explanation-4: -Both socialism and communism are types of a command economy. In all three, the government controls businesses, resources, and economic activity in the country.

Detailed explanation-5: -It is associated with socialism and communism. Examples of countries following a command economic system are Cuba, North Korea, Belarus, China, Iran, and Russia. Some of the advantages are the equal distribution of wealth, reduced inequality, low level of unemployment, and maximized social welfare.