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: -In a command economy, the government determines what is produced, how it is produced, and how it is distributed. Private enterprise does not exist in a command economy. The government employs all workers and unilaterally determines their wages and job duties and product pricing.

Detailed explanation-3: -Because of this, a command economy is often also referred to as a centrally planned economy. This is meant to highlight the idea that the economic decisions of the country are controlled by a central force, which is the leadership of the government.

Detailed explanation-4: -Socialism. Socialism is an economic system in which there is government ownership (often referred to as “state run”) of goods and their production, with an impetus to share work and wealth equally among the members of a society.

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.