Central Planning

Definition

Central planning refers to an economic system where the government makes all the decisions regarding production, distribution, and resource allocation. It involves a central authority that determines what goods and services are produced, how they are produced, and who receives them.

Related terms

Government Intervention: This term refers to any action taken by the government to influence or control economic activities in order to achieve certain goals.

Traditional Economy: A traditional economy is an economic system based on customs, traditions, and rituals passed down from generation to generation. It relies on agriculture, hunting, fishing, and gathering as primary means of survival.

Market Economy: A market economy is an economic system where most resources are owned by individuals or private businesses. Decisions about production and consumption are made through voluntary exchanges in markets based on supply and demand.