ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The government has complete control over deciding what should be produced in the country, how it should be produced, and for whom it should be produced. A command economy is also known as a planned economy, as the production, expenditure, and prices are centrally decided by the government.

Detailed explanation-2: -Government Controls Production in Command Economy In a command economy, the government (or some other central authority) controls and steers major aspects of economic production. The government decides the means of production and owns the industries that produce goods and services for the public.

Detailed explanation-3: -In a market economy, the producer gets to decide what to produce, how much to produce, what to charge customers for those goods, and what to pay employees. These decisions in a free-market economy are influenced by the pressures of competition, supply, and demand.

Detailed explanation-4: -In command economies, decisions about both allocation of resources and allocation of production and consumption are decided by the government.

Detailed explanation-5: -A centrally planned economy, also known as a command economy, is an economic system where a government body makes economic decisions regarding the production and distribution of goods.