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In planned economy (command economy) an economic system in which g everyplacenment or worker councils manages the country economy. Government harness the manufacturing and distributing of income. The planners decide what to be produced and direct the enterprise to produce those mediocre 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 survives in Myanmar. Advantages of mean economy: Stability. Countries would not suffer from bust business cycle. infra 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 clash collective objectives by respective(prenominal) sacrifice. aforethought(ip) economy serves collective quite than individual need s, under such system rewards, whether wages or perquisites, are to be distributed according to the value that the state ascribes to the emolument performed.

A planned economy eliminates the individual profit motives as the driving force force of production and places it in the detainment 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 mark consumer preference; they do not know how much to produce. top off to surplus or shortage. superabundance leads to wastage of labors and mat erials. Lack of incentive for innovation. ! Planned economy can generate vast national resources into interrogation and development if it put downs the idea that a particular reach is critical to its interests, usually military technology. Corruption. Planned economy creates complaisant conditions favoring political corruption. Centralized decision-making predisposes planners to abuses of power.If you want to get a lavish essay, order it on our website: OrderCustomPaper.com

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