World Economic Systems Questions
Central planning in a planned economy refers to a system where the government or a central authority makes all the economic decisions and controls the allocation of resources. This includes determining what goods and services are produced, how they are produced, and who receives them. The central planning authority sets production targets, determines prices, and allocates resources based on the overall economic goals and priorities of the country. This approach aims to achieve economic stability, equitable distribution of resources, and the fulfillment of societal needs as determined by the government.