WORLD HISTORY

Detailed explanation-1: -Command economy is a system where the government decides goods production, process, quantity, and price in a country. In this system, the government also manages income and investments. A communist nation like the former Soviet Union, Cuba, and North Korea work according to this system.

Detailed explanation-2: -Command economies were often associated with the political system of Communism. It was Karl Marx, in the Communist manifesto who argued for ‘common ownership of the means of production. ‘ A command economy works in contrast to a free market economy.

Detailed explanation-3: -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-4: -The theory of a command economy was defined by Karl Marx in the Communist Manifesto as “common ownership of the means of production, ‘’ and it became a typical characteristic of communist governments.

Detailed explanation-5: -Socialism is an economic and political system based on public or collective ownership of the means of production that emphasizes economic equality. more. Centrally Planned Economy. A centrally planned economy is an economic system in which decisions are made by a central authority rather than by market participants.