ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The best examples of command economy include Soviet Union, Cuba, and North Korea. China was also included in the command economy for several years before converting into a mixed economy.

Detailed explanation-2: -The economy of North Korea is a centrally planned economy, following Juche, where the role of market allocation schemes is limited, although increasing. As of 2022, North Korea continues its basic adherence to a centralized command economy.

Detailed explanation-3: -The most famous example of a command economy was the former Soviet Union, which operated under a communist system. Since decision-making is centralized in a command economy, the government controls all of the supply and sets all of the demand.

Detailed explanation-4: -The Constitution of South Korea stipulates that “the right of property of all citizens shall be guaranteed.” In other words, South Korea is based on a market economy, and thus it allows individuals and businesses to freely conduct economic activities and guarantees their profits and properties.

Detailed explanation-5: -The constitution defines North Korea as “a dictatorship of people’s democracy” under the leadership of the Workers’ Party of Korea (WPK), which is given legal supremacy over other political parties.