ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Command economy is a system where the government decides goods production, process, quantity, and price in a country. In this system, the government also manages income and investments. A communist nation like the former Soviet Union, Cuba, and North Korea work according to this system.

Detailed explanation-2: -Command Economy-Key takeaways The government owns and controls all the resources and means of production and also determines the prices and quantity of goods and services to be produced and distributed.

Detailed explanation-3: -A command economy, also known as a planned economy, is one in which the central government plans, organizes, and controls all economic activities to maximize social welfare. Command economies, as opposed to free-market economies, do not allow market forces like supply and demand to determine production or prices.

Detailed explanation-4: -The production of goods and services in planned economies is often done by state-owned enterprises, although independent companies may sometimes be incorporated into economic planning. Prices, wages, and production schedules are typically set by a centralized bureaucracy.

Detailed explanation-5: -In command economies, decisions about both allocation of resources and allocation of production and consumption are decided by the government.