ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The economy of North Korea is a centrally planned economy, following Juche, where the role of market allocation schemes is limited, although increasing. As of 2022, North Korea continues its basic adherence to a centralized command economy.

Detailed explanation-2: -North Korea has a command economy in which the central government directs the economy regarding the production and distribution of goods.

Detailed explanation-3: -South Korea has a mixed economic system which includes a variety of private freedom, combined with centralized economic planning and government regulation.

Detailed explanation-4: -North Korea is a command economy because the government controls every aspect of the nation’s economy, including wages and prices. The state controls all production in the country and sets priorities for what goods a factory can and will produce. There is no sign of a market economy in North Korea.