74.1k views
3 votes
Q2. Describe three roles of the Government in a Planned or Command Econom

What are some of its function? ​

User Rixter
by
8.4k points

1 Answer

2 votes

Answer:

Three roles of government in a planned economy:

*Planning economic activity: in a planned or command economy, the government actually plans the economy, in the sense that it determines the amount of goods and services to be produced an distributed over a period of time. In the Soviet Union for example, this period of time was of 5 years.

*Owning businesses: in planned or command economies, most or all firms are public, since private property usually does not exist in this type of economices. These firms tend to have a high degree of government control, where directly in the form of government ownership, or indirectly.

*Setting prices: a key characteristic of a planned economy is that prices are set beforehand. They are not left for the market to decide.

User NullByteMe
by
8.1k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories