Who makes most of the decisions in a centrally planned economic system?

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2026-09-06 23:30

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In a centrally planned economic system, most decisions are made by the government or a central authority. This entity determines what goods and services are produced, how resources are allocated, and the prices of those goods and services. The aim is to achieve specific economic and social goals, often with little regard for consumer preferences or market forces. Consequently, individual entrepreneurs and consumers have limited influence over economic outcomes.

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