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Topic: Business
Number of pages / Number of words: 5 / 1239
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(Anderton, 2000)

Lastly, they make decisions on the type and amount of outputs that are to be distributed to the consumers. In a planned economy, consumers get the same goods but the portions are according to their needs. Say, if a family is bigger, they'll be allocated with more common goods compared to the others...


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Say, if a family is bigger, they'll be allocated with more common goods compared to the others. Each consumer's purchasing power is restricted to their actual needs. They buy according to their needs, not their desires. (Anderton, 2000)

Reasons of Why Planned Economy emphasis on the Market Force

Some planned economies tend to place greater emphasis on the market force as market force that is being applied in free market system offers more benefits compared to command system...


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