ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An economic system in which private property is almost totally restricted is called socialistic economy. Other names of socialistic economy is centrally planned economy and command economy. Share your doubts.

Detailed explanation-2: -A socialist economic system can also be called as command economy, centrally planned economy or controlled economy because the means of production and distribution are owned, controlled and regulated by the public, either through the state or through cooperatives.

Detailed explanation-3: -A command economy, also known as a planned economy, is one in which the central government plans, organizes, and controls all economic activities to maximize social welfare. Command economies, as opposed to free-market economies, do not allow market forces like supply and demand to determine production or prices.

Detailed explanation-4: -In practice, however, communism is the name often given to a revolutionary form of socialism, also known as Marxism-Leninism, which took root in the Soviet Union and China during the 20th Century.

Detailed explanation-5: -A centrally planned economy is the one in which economic activities (production, consumption and exchange) are governed by the government. Market economy is the one in which economic activities (production, consumption and exchange) are governed by the market forces of supply and demand.