ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A command economy is where a central government makes all economic decisions. Either the government or a collective owns the land and the means of production. It doesn’t rely on the laws of supply and demand that operate in a market economy. A command economy also ignores the customs that guide a traditional economy.

Detailed explanation-2: -A command economy is an economic system where the government has control over the production and pricing of goods and services.

Detailed explanation-3: -A command economy is a system where the government has total control over the economy it reigns over. Characteristics of this economy include governmental control of wages and pricing, limited property rights, government ownership of key businesses and industries, and robust black markets.

Detailed explanation-4: -Alternatively, a command economy is organized by a centralized government that owns most, if not all, businesses and where government officials direct all the factors of production. East Germany, North Korea, and the former Soviet Union are all examples of command economies.