World Economic Systems Questions
Central planning in a planned market economy refers to a system where the government or a central authority makes all the economic decisions regarding production, distribution, and resource allocation. This includes determining what goods and services are produced, how much is produced, and at what prices they are sold. The central planning authority also decides on the allocation of resources, such as labor and capital, to different sectors of the economy. This approach aims to achieve specific economic goals set by the government, such as promoting social welfare or achieving economic stability.