ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A centrally planned economy or a command economy is one where the price and allocation of resources, goods and services is determined by the government rather than autonomous agents as it is in a free market economy.

Detailed explanation-2: -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.

Detailed explanation-3: -command economy, economic system in which the means of production are publicly owned and economic activity is controlled by a central authority that assigns quantitative production goals and allots raw materials to productive enterprises.

Detailed explanation-4: -Central planning denotes the total body of government actions to determine and coordinate directions of national economic development.

Detailed explanation-5: -Command economy relies on government officials to answer the three basic economic questions. Officials called – central planners/ decide on what will be produced and made.