ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In a command economy, the central plan decides everything. Freedom: Free market economy-The name tells all. In it, people can choose their professions and are free to move about in their country. In contrast, people have limited freedom in a command economy.

Detailed explanation-2: -Economic freedom is limited in a command economy because the government owns most of the property and decides how to use that property. The government decides what goods and services to produce, making it difficult for buyers to promote their own self-interest.

Detailed explanation-3: -In a free-market economy, private enterprises determine their levels of production in response to the law of supply and demand. In a command economy, the decision is dictated by government. Few free-market economies today operate entirely on the principle of laissez-faire.

Detailed explanation-4: -Command economies were characteristic of the Soviet Union and the communist countries of the Eastern bloc, and their inefficiencies were among the factors that contributed to the fall of communism in those regions in 1990–91.