BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -What Is a Centrally Planned Economy ? A centrally planned economy, also known as a command economy, is an economic system where a government body makes economic decisions regarding the production and distribution of goods.

Detailed explanation-2: -A command economy is characterized by the most government control over the economy.

Detailed explanation-3: -A command economy, also known as a planned economy, is one in which the central government plans, organizes, and controls all economic activities to maximize social welfare. Command economies, as opposed to free-market economies, do not allow market forces like supply and demand to determine production or prices.

Detailed explanation-4: -The command economy, also known as a planned economy, requires that a nation’s central government own and control the means of production.

Detailed explanation-5: -In command economies, the government controls the factors of production and answers the 3 economic questions of what, how and for whom to produce for all of society. Command economies often associated with socialism, communism and authoritarianism.