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In a centrally-run economy, decisions about quantities and prices of goods and services to be provided are made by a small group, usually government bureaucrats. The opposite is a market economy, where such decisions are made - in theory - by private producers (sellers) and consumers (buyers). Neither type exists in its pure form.
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∙ 10y ago
Anonymous
In a centrally planned economy, the government makes decisions regarding what to produce, How to produce and for whom to produce. Which means the government makes decisions regarding all the types and quantity of goods all firms produce. What type of technology and production methods they apply and to whose consumption is it made for. The reverse of centrally planned economy is free market or market economy, where these three decisions regarding what to produce, how to produce and for whom to produce is left to be made by collectively all the firms and consumers ie population. Neither of the two systems in their pure form exist.
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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.
Is ireland's economy centrally planned?
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What is centrally planned democratic free economy?
A centrally planned democratic free economy is one whereby the budget making process involves everyone.
Why do centrally planned economies tend not to be efficient?
What are two reasons why a centrally planned economy tend to be less efficient than a market base economy
What is the characteristic of a centrally planned economy?
One characteristic of a centrally planned economy is a steady money supply that is backed usually by gold or silver. This economy is moderated by the state in order to control availability.
What is the governments role 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 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.
How is a government 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.
Is ireland's economy centrally planned?
ummm
What is centrally planned democratic free economy?
A centrally planned democratic free economy is one whereby the budget making process involves everyone.
Why do centrally planned economies tend not to be efficient?
What are two reasons why a centrally planned economy tend to be less efficient than a market base economy
An economy in which only the government makes economic decisions is a?
Centrally Planned Economy
What is the characteristic of a centrally planned economy?
One characteristic of a centrally planned economy is a steady money supply that is backed usually by gold or silver. This economy is moderated by the state in order to control availability.
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 the economic system that relies on habit custom or ritual to decide questions of consumption and production of goods and services?
a centrally planned economy
Is Italy centrally planned?
No. Since its creation in 1946, the Italian Republic has never had a centrally planned economy.
Why are centrally planned economies moving towards free market economies?
This is because centrally planned economy can never reach the same level of efficiency that free market economies create. Although centrally planned economy does work in the short run (So Viet Union); in the long run, it creates huge inefficiency and thus harm not only the economy but also the people in the country. Hence, by moving towards free market they are able to gain more economic growth and possibly economic development.
