ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Command economies also occur in egalitarian forms of government like socialism and communism.

Detailed explanation-2: -Both socialism and communism are essentially economic philosophies advocating public rather than private ownership, especially of the means of production, distribution and exchange of goods (i.e., making money) in a society.

Detailed explanation-3: -Both socialism and communism are types of a command economy. In all three, the government controls businesses, resources, and economic activity in the country.

Detailed explanation-4: -The command economy is a component of a communist political system, while a free market system exists in capitalist societies.

Detailed explanation-5: -Communism is an economic system where the group owns the factors of production. The factors of production are labor, entrepreneurship, capital, and land. 1 Although the government doesn’t legally own the labor force, the central planners tell the people where they should work.