Answer
In a centrally planned economy, the government makes all decisions about what to produce, how much, and how resources are allocated. The government owns most of the means of production and runs the economy based on its own plans, not on market forces.
Solution
Certainly! Let's address both parts of your query:
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### **D. What kind of government will the society have, how will it be run, and who will run it?**
**Type of Government:**
In a centrally planned economy, the government typically adopts a **commissary** or **authoritarian** structure. This means that a central authority—often a single party or government body—holds primary control over economic and political decisions.
**How It Will Be Run:**
- **Central Authority:** A centralized governing body formulates economic plans that dictate production, distribution, and resource allocation. This body sets targets for various industries, determines what goods and services will be produced, and assigns resources accordingly.
- **State Ownership:** The means of production (factories, land, resources) are owned and managed by the state. Private ownership is minimal or non-existent, depending on the specific model of central planning.
- **Bureaucratic Management:** The economy is managed through a network of governmental agencies and departments. These institutions implement the central plans, oversee industries, and ensure compliance with governmental directives.
**Who Will Run It:**
- **Central Planners:** A group of appointed officials or a single-party leadership typically run the government. These individuals are responsible for creating and enforcing economic plans.
- **Political Leaders:** In many centrally planned economies, the political leadership (e.g., a communist party) holds significant sway over both political and economic decisions, ensuring that economic activities align with the party’s ideology and objectives.
- **Bureaucrats and Administrators:** Various levels of bureaucracy handle the day-to-day management of economic activities, ensuring that the central plans are executed effectively across different sectors.
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### **Centrally Planned Economies Allocate Resources Based On Decisions By**
Centrally planned economies allocate resources based on decisions made by the **central government or a central planning authority**. This authority is responsible for determining what goods and services are produced, the quantity to be produced, the methods of production, and the distribution of these goods and services among the population.
**Key Points:**
- **Top-Down Planning:** Resource allocation is managed through comprehensive plans that outline economic goals and directives from the top levels of government.
- **Elimination of Market Signals:** Unlike market economies where supply and demand dictate resource allocation, centrally planned economies rely on government decisions to manage resources, aiming to meet predetermined economic and social objectives.
- **Focus on Collective Goals:** The central authority prioritizes national or societal goals over individual profits, striving for objectives like full employment, equitable distribution of wealth, and the provision of essential services.
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**Summary:**
In a centrally planned economy, a centralized government or authority runs the society by owning the means of production and making all key economic decisions. Resource allocation is determined by this central body, aiming to achieve specific economic and social objectives rather than relying on market forces.
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