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: -In a free-market economy, private enterprises determine their levels of production in response to the law of supply and demand. In a command economy, the decision is dictated by government.

Detailed explanation-3: -In a Centrally Planned Economy, the three aspects of Ownership, Production, and Allocation are all controlled by the government or the central planning authority.

Detailed explanation-4: -In a command economy, the government makes all the major economic decisions. It controls all means of production, such as raw material, money, land, and industries in a country. The government holds the strings; the people are left hanging.

Detailed explanation-5: -Answer and Explanation: Command Economy is an economic system in which the government makes all the economic decisions. A command economy refers to the economic situation where the public body or the government owns the production in an economy. The central authority controls the production in the economy.