Commerce Exam > Commerce Questions > What do you mean by centrally planned economy...
Start Learning for Free
What do you mean by centrally planned economy?
Verified Answer
What do you mean by centrally planned economy?
Centrally Planned Economy:
Most of us go to stores, buy our goods, and go about our everyday lives without thinking much about who decided what products and goods to produce and distribute. We simply know what we need, and hope that the store we visit will have it in stock. However, what would happen if you went to the store one day to buy something - let's say cereal - and found that it was no longer being sold? And not just in your local market, but anywhere? You'd probably ask - why? And who made that decision? Well, the answer to these questions can be determined by exploring the term centrally planned economy.
So what is a centrally planned economy? Well, there are several parts to this definition. They are as follows:
- The government makes the economic decisions. This is different from the market economy that we are familiar with, in which businesses decide what they will produce, not the government.
- The government controls all aspects of the economic production. In other words, the government decides what goods will be produced and how they will be produced.
- The government decides how resources are distributed and used. For example, if the government thinks we need more goods in a particular area, they will make that decision, not the businesses in that area.
- The government needs to make the decisions. It is assumed that the needs of the people are not met in a market economy; therefore, in a centrally planned economy, the government controls decision-making.
- The government can determine the price of goods and services.
This question is part of UPSC exam. View all Commerce courses
Most Upvoted Answer
What do you mean by centrally planned economy?
Centrally planned economy refers to an economy in whoch the economy is owned , controlled and operated by the government of the country. themain objective of tis economy is social welfare
Community Answer
What do you mean by centrally planned economy?
Centrally Planned economy is the economy which is controlled and governed by the government or the centre.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
What do you mean by centrally planned economy?
Question Description
What do you mean by centrally planned economy? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about What do you mean by centrally planned economy? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What do you mean by centrally planned economy?.
What do you mean by centrally planned economy? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about What do you mean by centrally planned economy? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What do you mean by centrally planned economy?.
Solutions for What do you mean by centrally planned economy? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of What do you mean by centrally planned economy? defined & explained in the simplest way possible. Besides giving the explanation of
What do you mean by centrally planned economy?, a detailed solution for What do you mean by centrally planned economy? has been provided alongside types of What do you mean by centrally planned economy? theory, EduRev gives you an
ample number of questions to practice What do you mean by centrally planned economy? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup