What is a Planned Economy?

What is a Planned Economy?

Planned Economy is also referred to as the Command Economy. All the decisions are taken by the government and the government decides how the resources are to be allocated. If the government decides to produce a product it will produce the product irrespective of the fact that it generates any profit or not. The main aim of the government is to facilitate the people and to produce the products which are beneficial for the general public.

The perfect example of a Planned Economy is Russia