ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Most productive resources are controlled by the government and the decisions about how the resources will be used is determined by the government. A command economy is most closely associated with socialism and/or communisms, including the following countries: North Korea, Cuba, Russia, and China.

Detailed explanation-2: -Key Takeaways Command economies have been associated with communist nations whereas free-market economies have been associated with democracies. Command economy advantages include low levels of inequality and unemployment and the common objective of replacing profit with equality as the primary incentive of production.

Detailed explanation-3: -A command economy is characterized by the most government control over the economy.

Detailed explanation-4: -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.