ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What is communism? Communism is a political and economic system that seeks to create a classless society in which the major means of production, such as mines and factories, are owned and controlled by the public.

Detailed explanation-2: -Communism is a political system characterized by a centrally planned economy with all economic and political power resting in the hands of the government. Communist governments are authoritarian in nature. The government (or central authority) determines what, how, and for whom goods and services are produced.

Detailed explanation-3: -The USSR is the quintessential example of a centrally planned economy. A centrally planned economy or a command economy is one where the price and allocation of resources, goods and services is determined by the government rather than autonomous agents as it is in a free market economy.

Detailed explanation-4: -Characteristics of centrally planned economies pertain to ownership, sovereign decision making, price setting, distribution, production, economic decision making, incentives, and political control. Advantages of this economy relate to price control, wealth, and employment.

Detailed explanation-5: -Communism, also known as a command system, is an economic system where the government owns most of the factors of production and decides the allocation of resources and what products and services will be provided. The most important originators of communist doctrine were Karl Marx and Frederick Engels.