GENERAL KNOWLEDGE

Detailed explanation-1: -A centrally planned economy is an economic system where the government controls the factors of production. The government centrally plans, implements and controls economic activities. Such a system exists to attain social development and harmony in society. It is associated with socialism and communism.

Detailed explanation-2: -The command economy, also known as a planned economy, requires that a nation’s central government own and control the means of production. Private ownership of land and capital is nonexistent or severely limited.

Detailed explanation-3: -A centrally planned economy or a command economy is one where the price and allocation of resources, goods and services is determined by the government rather than autonomous agents as it is in a free market economy.

Detailed explanation-4: -Central planning denotes the total body of government actions to determine and coordinate directions of national economic development.

Detailed explanation-5: -In a Centrally Planned Economy, the three aspects of Ownership, Production, and Allocation are all controlled by the government or the central planning authority.