Describe the concept of state ownership in a centrally planned economy.

World Economic Systems Questions



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Describe the concept of state ownership in a centrally planned economy.

State ownership in a centrally planned economy refers to the government's control and ownership of key industries, resources, and means of production. In this economic system, the state plays a dominant role in making economic decisions and determining the allocation of resources. The government owns and operates major sectors such as energy, transportation, healthcare, and telecommunications. State ownership aims to ensure that the economy functions in accordance with the government's goals and priorities, allowing for centralized planning and control over economic activities.