ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The command economy is unlike a free-market or capitalist economy. In a free-market economic system, manufacturing and production are based on the powers of supply and demand with little or no government intervention. Examples of command economies today include North Korea, Iran, Libya, and Cuba.

Detailed explanation-2: -The economy of Cuba is a mixed command economy dominated by state-run enterprises. Most of the labor force is employed by the state. In the 1990s, the ruling Communist Party of Cuba encouraged the formation of worker co-operatives and self-employment.

Detailed explanation-3: -Understanding Command Economy. Cuba, North Korea, and the former Soviet Union all have command economies.

Detailed explanation-4: -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. The government makes economic decisions for the good of society.

Detailed explanation-5: -question, “How will products be produced?” A command economy is a system where the government, rather than the free market, determines what goods should be produced, how much should be produced, and the price at which the goods are offered for sale.