Economics Market Economy Questions
In a market economy, the role of economic planning is limited. The main function of economic planning is to provide a framework for the smooth functioning of the market by establishing rules, regulations, and policies. It aims to address market failures, promote competition, and ensure the efficient allocation of resources. Economic planning also plays a role in setting macroeconomic goals, such as controlling inflation and promoting economic growth. However, in a market economy, the majority of economic decisions are made by individuals and businesses based on their own self-interest, rather than being centrally planned by the government.