ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Communism is a political system characterized by a centrally planned economy with all economic and political power resting in the hands of the government. Communist governments are authoritarian in nature. The government (or central authority) determines what, how, and for whom goods and services are produced.

Detailed explanation-2: -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-3: -The economy of Cuba is a mixed command economy dominated by state-run enterprises. Most of the labor force is employed by the state.

Detailed explanation-4: -Since its establishment in 1949 and until the end of 1978, China maintained a centrally planned, or command, economy. The state directed and controlled a large share of the country’s economic output; the state set production goals, controlled prices, and allocated resources throughout most of the economy.

Detailed explanation-5: -Alternatively, a command economy is organized by a centralized government that owns most, if not all, businesses and where government officials direct all the factors of production. East Germany, North Korea, and the former Soviet Union are all examples of command economies.