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The fundamental disadvantage of a centrally planned economy is that local conditions, which often vary from one place to another (and can change rapidly), cannot be accounted for at the highest levels of planning. Another serious disadvantage is the cost incurred by such an economy's numerous executive agencies and administrators.
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Explain how a government is involved in a centrally planned economy?
it controls all major sectors of the economy and formulates all decisions about their use and about the distribution of income
Who answers the questions in a centrally planned economy?
Typically, a person who knows the answer will answer a question put to him and being in a centrally planned economy has nothing to do with it.If the question intends to ask "Who makes the decisions of how much to produce in a centrally planned economy?" the answer to that would be, generally speaking, the government, and specifically it would be an economics ministry of the state. In the Soviet Union, for example, there was the State Planning Committee, popularly known as Gosplan, that made key decisions in terms of how much to produce in all major industries.
What are Economic goals of a centrally planned economy?
Equality is a major goal of a centrally planned government. Also growth is, but they only want the economy as a whole to grown not an individual. Also they want people to feel secure, but only secure enough so that they do not rebel against the government.
Why is Cuba a planned economy?
Cuba is considered a planned economy because the government centrally controls the production, distribution, and pricing of goods and services. This system, established after the 1959 revolution, aims to eliminate private ownership of major industries and ensure equitable resource allocation among the population. The state plans and directs economic activity to meet social needs rather than profit motives, reflecting socialist principles. Consequently, the economy relies heavily on state enterprises and strict regulations, limiting market forces.
How did the four modernization's change china's economic?
The Four Modernizations, initiated by Deng Xiaoping in the late 1970s, significantly transformed China's economy by focusing on advancements in agriculture, industry, defense, and science and technology. These reforms shifted China from a centrally planned economy to a more market-oriented system, encouraging foreign investment and private ownership. As a result, China's GDP experienced rapid growth, lifting millions out of poverty and positioning the country as a major global economic power. This transition also facilitated increased technological innovation and integration into the global economy.
What a major disadvantage of centrally planned economy?
it cannot meet consumers needs and wants
Explain how a government is involved in a centrally planned economy?
it controls all major sectors of the economy and formulates all decisions about their use and about the distribution of income
Who answers the questions in a centrally planned economy?
Typically, a person who knows the answer will answer a question put to him and being in a centrally planned economy has nothing to do with it.If the question intends to ask "Who makes the decisions of how much to produce in a centrally planned economy?" the answer to that would be, generally speaking, the government, and specifically it would be an economics ministry of the state. In the Soviet Union, for example, there was the State Planning Committee, popularly known as Gosplan, that made key decisions in terms of how much to produce in all major industries.
What are Economic goals of a centrally planned economy?
Equality is a major goal of a centrally planned government. Also growth is, but they only want the economy as a whole to grown not an individual. Also they want people to feel secure, but only secure enough so that they do not rebel against the government.
What is a major disadvantage of a central planned economy?
it cannot meet consumers needs and wants
What two major market structures are affected by industrial regulation?
A mixed market and planned economy.
Why is Cuba a planned economy?
Cuba is considered a planned economy because the government centrally controls the production, distribution, and pricing of goods and services. This system, established after the 1959 revolution, aims to eliminate private ownership of major industries and ensure equitable resource allocation among the population. The state plans and directs economic activity to meet social needs rather than profit motives, reflecting socialist principles. Consequently, the economy relies heavily on state enterprises and strict regulations, limiting market forces.
What was not a common feature of major cities at the end of the 19th century Mass transit became more common Slums shrank due to an economic boom Cities?
Urban growth was centrally planned.
Why does everyone need to understand how to read a topographic map?
A planned economy or directed economy is an economic system in which the state or workers' councils manage the economy.[1] It is an economic system in which the central government makes all decisions on the production and consumption of goods and services.[2] Its most extensive form is referred to as a command economy,[3] centrally planned economy, or command and control economy[4]. In such economies, central economic planning by the state or government is so extensive that it controls all major sectors of the economy and formulates all decisions about their use and about the distribution of income.[5] The planners decide what should be produced and direct enterprises to produce those goods.[6] Planned economies are in contrast to unplanned economies, such as a market economy, where production, distribution, pricing, and investment decisions are made by the private owners of the factors of production based upon their own interests rather than upon furthering some overarching macroeconomic plan. Less extensive forms of planned economies include those that use indicative planning, in which the state employs "influence, subsidies, grants, and taxes, but does not compel."[7] This latter is sometimes referred to as a "planned market economy".[8]A planned economy may consist of state-owned enterprises, private enterprises directed by the state, or a combination of both. Though "planned economy" and "command economy" are often used as synonyms, some make the distinction that under a command economy, the means of production are publicly owned. That is, a planned economy is "an economic system in which the government controls and regulates production, distribution, prices, etc."[9] but a command economy, while also having this type of regulation, necessarily has substantial public ownership of industry.[10] Therefore, command economies are planned economies, but not necessarily the reverse.Important planned economies that existed in the past include the economy of the Soviet Union, which, according to CIA Factbook estimates, was for a time the world's second-largest economy[11], China between 1949 to 1978, and India, prior to its economic reforms in 1991, Afghanistanunder the Soviet occupation and under the Taliban, and Iraq under Saddam Hussein from 1979 to 2003.[12][13] Beginning in the 1980s and 1990s, many governments presiding over planned
Who was The former slave who preached resistance to slavery and planned a major slave uprising in Charleston was?
the former slave who preached resistance to slavery and planned a major uprising in Charleston was
What is the economy in Bangladesh?
major sources of economy of Bangladesh
Advantages and disadvantages for small business?
Advantage: Are the major employer in the country and help keep the economy strong. Disadvantage: Everybody including polititions think they have plenty of money when the case is that they are usually struggling to get by.
