Economics Command Economy Questions Medium
Central planning in a command economy refers to the system where the government or a central authority makes all the major economic decisions and controls the allocation of resources. In this type of economic system, the government determines what goods and services should be produced, how they should be produced, and who should receive them. Central planning involves setting production targets, determining prices, and organizing the distribution of goods and services. The government typically owns and operates key industries and controls the factors of production, such as land, labor, and capital. The goal of central planning is to achieve economic stability, promote social welfare, and prioritize collective interests over individual preferences. However, central planning has been criticized for its inefficiency, lack of innovation, and limited individual freedom.