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- A planned economy is characterized by12:
- Important decisions such as what to produce, how to produce and how to distribute goods or services are taken by the government.
- Prices are decided by the price control mechanism.
- Production is planned for at least five or ten years in advance.
- Involves a high level of bureaucracy to manage and plan economic decisions.
- A higher degree of political control.
- All resources are owned and managed by the government.
- There is no consumer or producer sovereignty.
- The market forces are not allowed to set the price of the goods and services.
- Profit is not the main objective, instead the government aims to provide goods and services to everybody.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Other features of a planned economy are:
- Important decisions such as what to produce, how to produce and how to distribute goods or services are taken by the government
- Usually, prices are decided by the price control mechanism
unacademy.com/content/bpsc/study-material/econ…What are the characteristics of planned economy?
- All resources are owned and managed by the government.
- There is no Consumer or producer sovereignty.
- The market forces are not allowed to set the price of the goods and services.
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See all on WikipediaPlanned economy - Wikipedia
A planned economy is a type of economic system where the distribution of goods and services or the investment, production and the allocation of capital goods takes place according to economic plans that are either economy-wide or limited to a category of goods and services. A planned economy may use centralized, … See more
In the Hellenistic and post-Hellenistic world, "compulsory state planning was the most characteristic trade condition for the Egyptian countryside, for See more
A decentralized-planned economy, occasionally called horizontally planned economy due to its horizontalism, is a type of planned economy in which the investment and allocation of consumer and capital goods is explicated accordingly to an economy-wide … See more
• Kaplan, Robert – see reference to his work on International Economics and Foreign Relations, where he addresses nature of "command economy", a Weberian term.
• Cox, Robin (2005). "The Economic Calculation Controversy: Unravelling of a Myth". … See moreWikipedia text under CC-BY-SA license Planned Economy - What's It, Example, Advantage, Characteristics
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