ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In its purest form, a command economy answers the three economic questions by making allocation decisions centrally by the government.

Detailed explanation-2: -economy the central government makes all decisions about the production and consumption of goods and services. Examples: Cuba, China, other communist countries, kingdoms and dictatorships.

Detailed explanation-3: -In a command economy, what goods and services are produced, how they are produced, and for whom they are produced are all questions answered by government planning.

Detailed explanation-4: -In a command economy, the central government dictates the level of production of goods and controls their distribution and prices. Proponents of command economies argue government control rather than private enterprise can ensure the fair distribution of goods and services.

Detailed explanation-5: -A command economy is a system in which a central government makes all economic decisions. Either the government or a collective owns the land and the means of production.