ECONOMICS (CBSE/UGC NET)

ECONOMICS

ECONOMIC SYSTEMS

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Which economic system does the government make all economic decisions and owns most of the property-it is sometimes called communism?

A	Traditional
B	Command
C	Market
D	Mixed

Explanation:

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: -The command economy is a component of a communist political system, while a free market system exists in capitalist societies.

Detailed explanation-3: -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-4: -In the other, socialism, the state owns the means of production, and state-owned enterprises seek to maximize social good rather than profits.

Detailed explanation-5: -Socialism is an economic and political system based on collective ownership of the means of production. All legal production and distribution decisions are made by the government in a socialist system.

There is 1 question to complete.