ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A command economy is a system in which a central government makes all economic decisions. Either the government or a collective owns the land and the means of production.

Detailed explanation-2: -Command economies rely on a central authority to make most of the economic decisions. A central authority makes the major decisions in a command economy.

Detailed explanation-3: -Command economies are characterized by large surpluses and shortages, monopolies, and prices set by the government. Mixed economies are characterized by corporate profitability, the use of fiscal and monetary policies to stimulate growth, and the existence of a public and private sector.

Detailed explanation-4: -In a command system, there is a dominant centralized authority – usually the government – that controls a significant portion of the economic structure. Also known as a planned system, the command economic system is common in communist societies since production decisions are the preserve of the government.

Detailed explanation-5: -A command system is a kind of economic system where the government plays a major role. Discover command systems in economics with real-world examples and explore the two biggest challenges of this system: moral hazard and the coordination problem. Updated: 11/01/2021.