ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -North Korea has a command (centralized) economy. The state controls all means of production, and the government sets priorities and emphases in economic development. Since 1954, economic policy has been promulgated through a series of national economic plans.

Detailed explanation-2: -The country of North Korea, officially known as the Democratic People’s Republic of Korea (DPRK), has an isolated and tightly controlled command economy. A command economy is a standard component of any communist country. In a command economy, the economy is centrally planned and coordinated by the government.

Detailed explanation-3: -Definition. 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-4: -South Korea has a mixed economic system which includes a variety of private freedom, combined with centralized economic planning and government regulation.