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Planned Economy
A Planned Economy or Command Economy is an economy primarily driven by the local government which chooses how much production an industry should perform. Given the myopic views of most governments, planned economies often resulted in production shortfalls and excesses, leading to general frustration of populaces where planned economies existed, such as most Communist countries prior to the 1980s.
359 Questions
What is involved in planned giving schemes?
Planned giving is a donation. How much do you plan to give? 5% of your salary is the average that people donate to churches, cancer society, Alzheimer association, etc. There are many association I need of you money. You can give to one or to a bunch once you decide how mush you are ready to donate.
The difference between a command economy and a demand economy?
A command economy is a private business that the government does not support. It is purely driven by consumers. They decide on what is produced.
A demand economy is a business where only the government decides what is produced.
There is also something called a mixed economy and that is when the government supports private businesses and decides what is produced for them.
Is a centrally planned economy desirable?
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.
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.
A plan of action can range from simple to complex. The plan typically has individual steps to reach a particular goal; on simple plans, the steps may be so habitual, that we don't even think of them as steps anymore. For example:
Simple Goal and Plan of Action
Goal: Go to the store to buy milk
Steps:
- get up from my chair
- change my clothes so I am presentable
- comb my hair
- put on my shoes
- get my coat
- find my car keys
- grab my purse or wallet - do I have the money with me
- step out the door; lock the door
- unlock the car, get in, turn on the car
- drive to store
- stop car, get out, lock car
- go into store
- find the milk
- pay for milk, return home using many of the same steps I used before
A goal can be:
- pass HS classes
- Apply to college
- look for a job
- etc.
The more complex the goal, the more individual "steps" you will need to take. "Steps" can be broken down--and should be broken down--into their smallest pieces to ensure success. "Apply to College" can feel overwhelming, but listing each small step makes the process feel manageable.
A plan of action can work for any task or goal.
What are the differences of planned and unplanned change?
compare between planned and unplanned change
What are the pros and cons of command economy?
Pros
A sense of community within the economy
Income equality
Potential to get things done very quickly
Cons
Little innovation
No competition within the economy
Firms will have a hard time competition in the world market
The quality of the good are detrimental
Inefficient allocation of resources
Lack of Freedom
Lack of personal gain
Generally, there is a lower standard of living when compared to a free market economy
Who sets the price number of items to produce and for whom to produce in a command economy?
alfred wegner
"That board is broken. Let's fix it next week." It is maintenance (trying to maintain the condition of an article). It is corrective (fixing something already broken rather than replacing it before it breaks). It is planned (the action has been set for a specific future date).
Market economy
Where are Command and control systems problems are reported to?
Command and control system problems are typically reported to a designated operations center or command center within an organization, such as military, emergency response, or corporate environments. These centers often have specialized personnel trained to handle such issues and coordinate responses. Additionally, incidents may be logged in incident management systems for tracking and analysis, and relevant authorities or stakeholders may also be notified based on the severity and nature of the problem.
Can a planned change ever be effective?
Yes, a planned change can be effective when it is well-structured, clearly communicated, and supported by leadership. Success often hinges on thorough assessment of the current situation, engagement of stakeholders, and a flexible approach to adapt to unforeseen challenges. Additionally, ongoing evaluation and feedback during the implementation process can enhance effectiveness and ensure that the change meets its intended goals.
Does a command economy use ration coupons?
In times of scarcity, a command economy can use rationing, but then, it could be argued that any time rationing is used, that is a form of command economy. In better economic circumstances, command economies just use money. Since a command economy controls how much money everybody has, money then serves almost the same function as a ration coupon.
In a command economy, individuals have less economic freedom.
Planned income refers to the anticipated revenue that an individual or organization expects to receive over a specific period, typically based on budgets, forecasts, or historical data. It includes various sources such as salaries, investments, sales, and other earnings. By setting a planned income, individuals and businesses can create effective financial strategies, manage expenses, and make informed decisions about spending and saving. It serves as a benchmark for evaluating actual performance against expectations.
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.
