ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The command economy, also known as a planned economy, requires that a nation’s central government own and control the means of production.

Detailed explanation-2: -Communism, also known as a command system, is an economic system where the government owns most of the factors of production and decides the allocation of resources and what products and services will be provided.

Detailed explanation-3: -communism, political and economic doctrine that aims to replace private property and a profit-based economy with public ownership and communal control of at least the major means of production (e.g., mines, mills, and factories) and the natural resources of a society.

Detailed explanation-4: -A command economy is characterized by the most government control over the economy.

Detailed explanation-5: -In communist nations, government makes all economic decisions; owns the land, natural resources, industry, banks, and transportation system; and controls all mass communication. Why have governments of communist nations such as China used a system of five year plans for the economy?