ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Communist countries, particularly Russia and China, decided on a centrally planned economy (aka command economy). The centrally planned economy had the following major attributes: The government owns all means of production, which is managed by employees of the state.

Detailed explanation-2: -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-3: -Communism is a political and economic system in which the major “productive resources” in a society – such as mines, factories, and farms – are owned by the public or the state, and wealth is divided among citizens equally or according to individual needs, says Encyclopaedia Britannica.

Detailed explanation-4: -Belarus: This former Soviet satellite is still a command economy. The government owns 80% of the country’s businesses and 75% of its banks as of 2022. 2. China: After World War II, Mao Tse Tung created a society ruled by Communism.

Detailed explanation-5: -According to general belief, socialism and communism are attributed to command economies. In fact, socialism is regarded as a type of command economic system, this is because majority of the means of production (such as capital goods and lands) are controlled by the state government.