What Is a Centrally Planned Economy?

A centrally planned economy is an economic system in which the government makes all economic decisions. This includes decisions about what to produce, how to produce it, and who will consume it.

The government may make these decisions through a variety of means, including direct commands, economic planning, or a combination of the two. In a centrally planned economy, the government owns all the means of production, such as factories, land, and resources. This means that the government can make all decisions about the economy without having to consult with or get approval from private businesses or individuals.

A centrally planned economy is different from a market economy, in which the decisions about what to produce, how to produce it, and who will consume it are made by private businesses and individuals. In a market economy, the government does not own the means of production, and so it must rely on the market to make economic decisions. What is another name for a market system? The other name for a market system is a free market system.

What is another term for a market economic system?

There is no precise answer to this question since there are a variety of different types of market economic systems. However, some common terms used to describe market economic systems include capitalism, laissez-faire capitalism, and free market capitalism. What is a planned economy quizlet? A planned economy is one in which the government makes decisions about what goods and services will be produced, and how they will be produced. The government may also own or control the means of production, such as factories, land, and resources. What is another term for planned economy quizlet? There is no other term for a planned economy.

How does planned economy work?

A planned economy is an economic system in which the government makes all economic decisions. This means that the government decides what to produce, how to produce it, and how to distribute it. The government may also own all or most of the means of production, such as factories, land, and resources.

Planned economies are usually based on Marxist or socialist ideas. The most famous planned economy was the Soviet Union. Other examples of planned economies include Cuba and North Korea.