ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In a market economy, almost everything is owned by individuals and private businesses-not by the government. Natural and capital resources like equipment and buildings are not government-owned. The goods and services produced in the economy are privately owned.

Detailed explanation-2: -Capitalism is an economic system characterized by private ownership of the means of production, especially in the industrial sector, with labor paid only wages. Capitalism depends on the enforcement of private property rights, which provide incentives for investment in and productive use of productive capital.

Detailed explanation-3: -In the other, socialism, the state owns the means of production, and state-owned enterprises seek to maximize social good rather than profits.

Detailed explanation-4: -If production, allocation, and ownership are 100% controlled by government, then we call such an economic system as Socialism.

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.