ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Lack of incentives: In a command economy, the government controls all the means of production and makes all the decisions about what goods and services will be produced.

Detailed explanation-2: -command economy, economic system in which the means of production are publicly owned and economic activity is controlled by a central authority that assigns quantitative production goals and allots raw materials to productive enterprises.

Detailed explanation-3: -Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society. The essential feature of capitalism is the motive to make a profit.

Detailed explanation-4: -Capitalism is an economic system providing free choice and individual incentive for workers, investors, consumers, and business enterprises. A free enterprise system is an economic system based on private ownership of the means of production and on individual economic freedom.

Detailed explanation-5: -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.