In planned economy (command economy) an economic system in which g everywherenment or worker councils manages the country economy. Government guide the manufacturing and distributing of income. The planners decide what to be produced and direct the enterprise to produce those equitable they have decided. Countries which ar having planned economy system, the country is more often than non fall in the not variable country. businessman would not want to invest or moved over thither and live. plotted economy still outlives in Myanmar. Advantages of aforethought(ip) economy: Stability. Countries would not suffer from bust business cycle. nether a planned economy, neither unemployment nor idle production facilities should exist beyond minimal levels, and the economy should develop in a electrostatic manner, prevented by inflation or recession group meeting collective objectives by respective(prenominal) sacrifice. plotted economy serves collective sort of than indi vidual needs, under such system rewards, whether wages or perquisites, are to be distributed according to the value that the state ascribes to the help performed.
A planned economy eliminates the individual profit motives as the driving force force of production and places it in the hands of the state planners to tick off what is the appropriate production of diametric sets of goods. Disadvantages of Planned Economy: senseless and shortage. Planned economy cannot observe consumer preference; they do not know how much to produce. mavin to surplus or shortage. superabundance leads to wastage of labors and m aterials. Lack of incentive for innovation.! Planned economy can generate vast national resources into investigate and development if it put downs the idea that a particular knowledge domain is critical to its interests, usually military technology. Corruption. Planned economy creates fond conditions favoring political corruption. Centralized decision-making predisposes planners to abuses of power.If you want to get a encompassing essay, order it on our website: OrderCustomPaper.com
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