EXTRA POINTS!! Compare and contrast centrally planned economies in free market economies. In your own words, respond in paragraph form if possible please. EVERYTHING HELPS!! TIA! Giving brainliest!!
The following is the distinction between a centrally planned economy and a free-market economy:
Centrally planned economy:
The activities in this economy are highly regulated and take place according to the will of the central governing authority. The players in the market do not get to choose what to manufacture or what to trade in. Most of the manufacturing and service sector is usually owned by the government. The prices of commodities are regulated by the government as per its will.
Free-market economy:
This type of economy functions in a manner that is exactly opposite to the centrally planned economy. Government intervention in the activities of manufacturing and trade is negligible. The manufacturers and traders get to choose what to manufacture and what to trade in. The function of the market itself determines the prices of the commodities.
