Planned Economy

It is not necessarily fixed as to who has titular ownership of capital in a planned/command economy. Ownership of capital can reside in either private entrepreneurs or in government-owned industries; a number of planned/command economies allowed for a degree of private property ownership. However, the fundamental basis of control, such as decisions about what to produce and the quantity to produce, are vested exclusively in the government. In planned/command economies, the government can literally order private factories to make products that do not have a large market desirability and to avoid producing products that have large demand.

The so called command economy of China is based on the reality that all major economic issues are decided upon by the Communist party leaders of this country.

One disadvantage of a command system is that it is not designed to meet the wants of consumers, even though many basic needs are provided.

A second disadvantage is that the system does not give people the incentive to work hard.

A third weakness is that the command economy requires a large decision-making bureaucracy.

Yet the fourth weakness of a command economy is that it does not have the flexibility to deal with minor, day-to-day problems.

Finally, people with new or unique ideas find it difficult to get ahead in a command economy.

One good thing about command economies is that they have good qualities. A few bad things about command economies is that they are not efficient and there is no incentive. If you were also wondering what a command economy even IS, then it is an economy where the government is in charge of what they make and how much they sell it for. The way I remember it is by saying that the government is saying, "I COMMAND you to make me this!" teehee. sorry if that was too much info...

decides how much consumers buy

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.

North Korea is a pure planned economy. Nothing goes through without the approval of a central authority, in this case, the Government.

The closest thing you have nowadays to a pure market economy would be the USA. But the Government still sticks his hand out if some extra help is needed, so, definitely not pure.

discuss the basic economic problem?

Sweden. The government is in complete control of everything, and they pay a lot of taxes, which results in them having universal health care. Unlike Canada, Sweden pays for university, day care, ect.

A Planned economy, also known as a command economy, is an economic system in which the state directs the economy. The central government controls industry such that it makes all decisions regarding the production and distribution of goods and services.

A planed economy is usually directed by central economic plan which is either put in place or influenced by the government. In a Planned economy the planners decide what should be produced and direct lower-level enterprises to produce those goods in accordance with national and social objectives.

The Soviet Union, China, and India were all planned economies in the past.

Rapid industrialization

Nations are moving towards a market economy and away from the command economy because the market economy is more efficient and makes more people happy. A market economy has more protections in place for consumers.

There are few benefits to a centrally planned (controlled) economy. One benefit might be that the amount of funds used to manufacture a particular product can be firmly budgeted for. Thus there are no surprises or cost over runs.

A national central committee would oversee the operation of various major aspects of the economy such as agriculture, industry, finance, etc. according to a national plan called Gosplan. After that committee, other subcommittees make decisions within those areas on regional and local levels.

it controls all major sectors of the economy and formulates all decisions about their use and about the distribution of income

Five-Year Plans in the Soviet Union

Basically the economic system in Sweden is really complicated. As you can see, Sweden is one of the few countries that has a percentage increase in GDP 4.1% (increase in Economic Growth). Sweden and the other Scandinavian countries have survived from this economic crisis for 2 reasons

1) Fiscal Policy, which involves increase in Government Spending and decrease in taxation. That's why the swedish government bought some of the banks, allowing the government to manipulate the interest rates. Even though Fiscal Policy is expensive, they took the risk rather than Monetary Policy which is much cheaper

2) They are out of the Euro currency.

Sweden uses ideas from Planned and Free Market that's why is so successful

Planned obsolescence refers to the design strategy where products are intentionally made to have a limited lifespan or become outdated. Examples include smartphones that are programmed to slow down after a certain period, light bulbs designed to burn out after a specific number of hours, and fashion trends that change rapidly to encourage consumers to buy new clothes frequently. These practices compel consumers to replace products sooner than necessary, driving continuous sales.

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 state.

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.