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  • Types of economic systems

Planned Economy

A planned economy, also known as a command economy, is an economic system where the government or a central authority makes all major decisions regarding the production and distribution of goods and services. Key features include state ownership of capital goods (the means of production), the absence of private firms and markets in primary decision-making, and the use of a comprehensive central plan to allocate resources and set production targets. This system contrasts with a market economy, where such decisions are decentralized and driven by price signals from supply and demand.

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  • Market economy

  • Planned Economy

  • Which of the following is NOT a type of economic system?

  • Which of the following is an economic ideology rather than a type of economic system?

  • Which type of economic system is characterized by strong government involvement in economic development?

  • In which type of economic system does the government have a significant role in planning the production and distribution of goods?

  • Slave Economy

  • Developmental State

  • Laissez-Faire State

  • Regulatory State

  • Welfare State

  • Mercantilism

  • Feudalism

  • Socialism

  • Capitalism

  • Types of Pre-Capitalist Economies

  • Identifying an Economic System

  • Classifying a National Economy

  • Match each economic system with its primary characteristic.

  • Comparing Economic Organization Models

  • Consider a society where a central authority owns all major industries and makes all decisions about production, including what to produce, in what quantities, and for whom. Prices for goods and services are also set by this authority. Based on this structure, which of the following outcomes is the most probable consequence?

  • A country's government sells its state-owned airline to private investors but also creates a new agency to provide significant financial support to domestic companies developing green technology. This combination of policies suggests the country is operating under what type of economic framework?

Learn After
  • Comparison between Developmental State and Planned Economy

  • Capitalism vs. Planned Economy

  • Characteristics of a Planned Economy

  • Theoretical Advantages of a Planned Economy

  • Disadvantages of a Planned Economy

  • Definition of Command Economy

  • Examples of Planned Economies

  • Economic Performance of the Soviet Union under Central Planning (1928-1990)

  • An economic historian is studying a 20th-century nation. The records show that the government set five-year goals for heavy industrial output, such as steel and tractor production, which were often met or exceeded. However, personal journals and letters from the period frequently complain about long lines for basic consumer goods like bread and shoes, and a general lack of variety and poor quality in the products that were available. Which of the following economic structures best explains this combination of outcomes?

  • Evaluating the Trade-offs in a Planned Economy

  • Analyzing Economic Inefficiencies in Agraria

  • Match each economic outcome with the feature of a centrally planned system that is its most direct cause.

  • In a centrally planned economic system, a sudden surge in consumer desire for a particular good, such as a new type of footwear, directly and automatically causes producers to increase its supply and its price to rise.

  • The Central Planner's Dilemma

  • A government is faced with a national crisis and must rapidly mobilize all available resources to achieve a single, massive-scale objective. Individual consumer preferences and market-driven innovation are considered secondary priorities during this period. In which of the following scenarios would the core principles of a centrally planned economic system be most effectively applied, based on its theoretical strengths?

  • A government is restructuring its economy. Which of the following actions is LEAST consistent with the principles of a centrally planned economy?

  • Resource Allocation in a Centralized System

  • Imagine you are a central planner in an economy where the government directs all major economic activity. Arrange the following steps in the logical order you would take to manage the production and distribution of goods for the entire country.