key term - Central planning

Definition

Central planning refers to an economic system where key decisions regarding production, distribution, and resource allocation are made by a central authority or government rather than through market forces.

Related terms

Command Economy: An economic system where production, distribution, and resource allocation are controlled by a central authority.

Market Economy: An economic system where decisions regarding production, distribution, and resource allocation are determined by supply and demand in the marketplace.

Mixed Economy:

An economic system that combines elements of both market-based mechanisms and government intervention in resource allocation.