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Planned Economies
1.
Planned economies are sometimes called «command economies» because the
state commands the use of resources that are used to produce goods and
services as it owns factories, land and natural resources.
Planned economies are economies with a large amount of central planning
and direction, when the government takes all the decisions; the
government decides production and consumption. Planning of this kind is
obviously very difficult and the result is that there is no society,
which is completely a command economy. The actual system employed varies
from state to state, but command or planned economies have a number of
common features.
2. Firstly, the state decides precisely what the nation is to produce.
It usually plans five years ahead. It is the intention of the planners
that there should be enough goods and services for all. Planners are
afraid to produce goods and services unless they are sure substantial
amounts will be purchased. This leads to delays and queues for some
products.
3. Secondly, industries are asked to comply with these plans and each
industry and factory is set a production target to meet. If each factory
and farm meets its target, then the state will meet its targets as set
out in the five-year plans. You could think of the factory and farm
targets to be objectives, which, if met, allow the nation's overall aim
to be reached.
4. A major problem faced by command or planned economies is that of deciding what to produce. Command
economies tend to be slow when responding to changes in people's tastes
and fashions. Planners are likely to underproduce some items as they
cannot predict changes in demand. Equally, some products, which
consumers regard as obsolete and unattractive, may be overproduced.
Определите основную идею текста.
Industries of the planned economies are set out production targets to meet in the five-year plan
A planned economy is a command economy with central planning and direction of the government.
Command economies slowly when respond to changes in people's tastes and fashions which leads to unproduction.
A planned economy when the government takes all important decisions can lead to delays and queues.
