ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Cuba, North Korea, and the former Soviet Union all have command economies. China maintained a command economy until 1978 when it began its transition to a mixed economy that blends communist and capitalist elements.

Detailed explanation-3: -Answer and Explanation: The economy of the Soviet Union had government in charge of all resources and where they went. This is the very definition of a centrally planned economy as one entity is deciding how the economy should function and what should be produced.

Detailed explanation-4: -In which kind of economy are prices determined by supply and demand and by government actions? A: while peoples’ wants are unlimited, resources are limited. How are the economic systems of North Korea and China similar? A: Both systems have democratic-type governments.