ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Key Takeaways In a command economy, the central government dictates the level of production of goods and controls their distribution and prices. Proponents of command economies argue government control rather than private enterprise can ensure the fair distribution of goods and services.

Detailed explanation-2: -Its goal is to supply enough food, housing, and other basics to meet the needs of everyone in the country. It also sets national priorities. These include mobilizing for war or generating robust economic growth.

Detailed explanation-3: -The purpose of a command economy is to ensure that the government can meet its economic goals. These goals may include ensuring that there is full employment, controlling inflation, or developing specific industries. This means that a command economy is not necessarily about maximizing economic output.

Detailed explanation-4: -Because a command economy is centrally planned, its pros include efficiency, theoretical equality between citizens (lack of inequality), focus on the common good as opposed to profits, speed, and low or non-existent unemployment.