State-controlled economy
A state-controlled economy, also known as a planned economy, is an economic system where the government makes all significant decisions about production, distribution, and pricing of goods and services. Instead of relying on market forces like supply and demand, the state determines what to produce and how resources are allocated. This system aims to achieve specific social and economic goals, such as reducing inequality or providing essential services. While it can lead to more uniform access to resources, critics argue it may limit innovation and personal freedoms compared to market-driven economies.
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A state-controlled economy, also known as a planned economy, is a system where the government makes all major decisions about the production, distribution, and pricing of goods and services. Instead of allowing market forces to dictate these factors, the state aims to manage resources to achieve specific economic goals, such as equality or modernization. This means that industries may be owned or regulated by the government, and economic planning can involve setting targets for production and employment. Examples include former Soviet Union and North Korea, where the government plays a dominant role in the economy.