Political Economy Economic Systems Questions
Central planning is an economic system in which the government or a central authority makes all the decisions regarding the production, distribution, and allocation of goods and services within a society. In this system, the government typically owns and controls the means of production, such as factories and resources, and determines what and how much should be produced, as well as the prices and distribution of goods. Central planning is often associated with socialist or communist economies, where the goal is to achieve economic equality and eliminate private ownership and competition. However, central planning has been criticized for its inefficiency, lack of incentives, and inability to respond to market demands and individual preferences.