ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Capitalism is based on individual initiative and favors market mechanisms over government intervention, while socialism is based on government planning and limitations on private control of resources. Left to themselves, economies tend to combine elements of both systems.

Detailed explanation-2: -The two major economic systems in modern societies are capitalism and socialism. In practice, no one society is purely capitalist or socialist, so it is helpful to think of capitalism and socialism as lying on opposite ends of a continuum.

Detailed explanation-3: -Economic systems are grouped into traditional, command, market, and mixed systems.

Detailed explanation-4: -Planned economy refers to a situation in which the government owns and manages the factors of production hence deciding what, how, and for whom production is to be done. The two forms of planned economies are communism and socialism.

Detailed explanation-5: -The two forms of capitalism: developmentalism and economic liberalism.