What Is a Centrally Planned Economy?
Автор: Simple Explain
Загружено: 2023-12-21
Просмотров: 1004
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A centrally planned economy, or command economy, is where the government makes decisions about the production and distribution of goods, often done by state-owned enterprises. Central planning is commonly associated with socialist or communist forms of government, and decisions are typically made by a central authority rather than individual consumers and private firms in a market economy. While central planning has its advocates, it is also subject to heavy criticism, especially regarding its inability to efficiently respond to supply and demand. Most planned economies have given way to free market systems, with only North Korea accurately described as a command economy today.
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