World Economic Systems Questions
Central planning in a planned market socialist economy refers to a system where the government or a central planning authority makes decisions regarding the allocation of resources, production levels, and distribution of goods and services. This planning is done with the aim of achieving social and economic goals, such as reducing inequality and ensuring the welfare of the population. In this system, the government sets targets and plans for various sectors of the economy, including agriculture, industry, and services. The central planning authority determines the production quotas, prices, and distribution channels for goods and services. While there is some degree of market mechanism and private ownership in a planned market socialist economy, the government plays a significant role in guiding and regulating economic activities to achieve desired outcomes.