ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In a pure command economy, the basic economic questions are answered by the government, which owns the productive resources and handles distribution of goods and services.

Detailed explanation-2: -Command economy relies on government officials to answer the three basic economic questions. Officials called – central planners/ decide on what will be produced and made. Individuals have little or no say in economic choices.

Detailed explanation-3: -In a market economy, resources are owned by private individuals. The goods and services that are produced are not determined by the government. Rather, production is determined by businesses responding to the wants and desires of consumers.

Detailed explanation-4: -A centrally planned economy, also known as a command economy, is an economic system where a government body makes economic decisions regarding the production and distribution of goods.

Detailed explanation-5: -Answer and Explanation: In a traditional economic system, the answers to the basic economic questions are determined by custom.