What is the characteristics of the planned economy?

Answer 1

A Planned economy, also known as a command economy, is an economic system in which the state directs the economy. The central government controls industry such that it makes all decisions regarding the production and distribution of goods and services.

A planed economy is usually directed by central economic plan which is either put in place or influenced by the government. In a Planned economy the planners decide what should be produced and direct lower-level enterprises to produce those goods in accordance with national and social objectives.

The Soviet Union, China, and India were all planned economies in the past.

Answer 2

In such economies, central economic planning by the state or government controls all major sectors of the economy and formulates all decisions about the use of resources and distribution of output.

Answer 3

Target settings for different sectors of economy that determine the supply. It is a type of economy in which some central authority makes a wide range of decisions pertaining to production and wages. The government can harness land, labor, and capital to serve the economic objectives of the state (which, in turn, may be decided by the people through a democratic process). Consumer demand can be restrained in favor of greater capital investment for economic development in a desired pattern. For example, many modern societies fail to develop certain medicines and vaccines which are seen by medical companies as being unprofitable, but by social activists as being necessary for public health. The state can begin building a heavy industry at once in an underdeveloped economy without waiting years for capital to accumulate through the expansion of light industry, and without reliance on external financing. Second, a planned economy can maximize the continuous utilization of all available resources. This means that planned economies do not suffer from a buisness cycle. Under a planned economy, neither unemployment nor idle production facilities should exist beyond minimal levels, and the economy should develop in a stable manner, unimpeded by inflation or recession. A planned economy can serve social rather than individual ends: under such a system, rewards, whether wages or perquisites, are to be distributed according to the social value of the service performed. A planned economy eliminates the dependence of production on individual profit motives, which may not in themselves provide for all society's needs.

Answer 4

Planned economies have the characteristics of government officials trying to improve upon free markets. More than not, interfering with an economy by social engineering and other measures of economic equality, turn a nation into one that hampers new ideas and slows economic growth.

Answer 5

cooperative, equity,collectivisation,public ownership of property

Answer 6

low prices less profit

Answer 7

jak is sick

Answer 8

Ponies.