ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In a pure command economy, there is no private sector, as the central government owns or controls all business.

Detailed explanation-2: -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-3: -Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society. The essential feature of capitalism is the motive to make a profit.

Detailed explanation-4: -A command economy is one where the central government makes all of the economic decisions. Capitalism is a system where the decisions are made by private individuals based on the profit motive.

Detailed explanation-5: -In a pure command economy, the basic economic questions are answered by the government, which owns the productive resources and handles distribution of goods and services.