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As this is a question looking for an opinion, you may have dissenting answers.
Answer 1 - No
The main problem with a centrally planned economy, and from which nearly all problems with the system derive, is the inability for forecasters to properly predict what future consumption will be. This inevitably leads to shortages, when a good is more desirable than previously estimated, and overages, when a good is less desirable than previously estimated. These shortages and overages lead to price instability, which harms businesses and consumers who can no longer adequately budget for their needs in a climate of price jumps and falls. Correspondingly, people buy less than they may want in order to only get what they absolutely need and save for a rainy day. This leads to a contracted economy overall. A free-market economy is able to circumvent the problem of shortages and overages more effectively since businesses are able to increase or decrease production with realtime market information.
It should not surprise anyone that every centrally planned economy has resulted in poor growth and dissatisfaction of the population.
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What countries are a centrally planned economy?
There are a few centrally planned economies as of 2013. Three of the planned economy countries are Cuba, Laos, and North Korea.
A centrally planned economy is?
A centrally planned economy is one in which the federal government owns, operates, and manages all production facilities.
Is ireland's economy centrally planned?
ummm
Is Italy centrally planned?
No. Since its creation in 1946, the Italian Republic has never had a centrally planned economy.
What is the role of government in a centrally planned economy?
In a centrally planned economy, the government is completely in charge of the economy. There is no reward for individual hard work. The government tells everyone what to do.
What is the role of the government in a centrally planned economy?
In a centrally planned economy, the government is completely in charge of the economy. There is no reward for individual hard work. The government tells everyone what to do.
Explain how a government is involved in a centrally planned economy?
In a centrally planned economy, the central government decide which part of the country to allocate cash and which one not to.
What is centrally planned democratic free economy?
A centrally planned democratic free economy is one whereby the budget making process involves everyone.
What is a command economy or centrally planned economy?
well command economy is when the government has all the control of what to sell or produce in a market and centrally planned economy...... my brain just went blank, have no idea,
20 disadvantages of centrally planned economy?
i dnt no
Which country has most extreme example of a centrally planned economy?
the most extreme example of a centrally planned economy are china,hongkong,cua and north korea
What is a centrally planned economy?
A centrally planned economy is an economic system in which economic decisions are made by the state or government rather than by the interaction between consumers and businesses.
