Centrally planned economy,
Definition of Centrally planned economy:
A central economy, also called an organized economy, is an economic system in which a central body such as the government makes economic decisions about the production and distribution of products. The central planning economy differs from the market economy, as these decisions are traditionally made by companies and consumers.
In an organized economy, the production of goods and services is usually done by state-owned companies. In a centrally planned economy, sometimes called an organized economy, prices are controlled by bureaucrats.
The national financial system in which the government operates, owns and manages manufacturing facilities. Most communist countries have tried to work with a model of the centrally planned economy, although the large bureaucracy that has been formed to manage it in general has been very critical of this model, which is the free market. Economists have found dysfunctional.
How to use Centrally planned economy in a sentence?
- In a centrally planned economy, important economic decisions are made by the central authority.
- The centrally planned economy has been criticized by a number of economists for facing various economic issues related to weak economic incentives, information restrictions and instability.
- The central planned economy contrasts with the market economy in which a large number of individual consumers and private non-profit companies run most or all of the economy.
Meaning of Centrally planned economy & Centrally planned economy Definition