Define planned economic system.

A planned economic system is an economic system in which the government or a central authority makes decisions about what goods and services will be produced, how they will be produced, and for whom they will be produced. In a planned economy, the government typically owns or controls the means of production and distribution, and sets prices and production targets for goods and services. This system is in contrast to a market economy, where decisions about production and distribution are made by individual producers and consumers interacting in the marketplace.

A planned economic system is an economic system in which the central government makes the majority of the decisions regarding the production, distribution, and pricing of goods and services. In a planned economy, the government has the authority to set economic goals and objectives, and it uses a variety of tools to achieve these goals, such as fiscal policy, monetary policy, and industrial policy.

There are a number of different types of planned economic systems, but they all share some common features. First, in a planned economy, the government has a high degree of control over the economy. Second, the government typically owns a large portion of the economy's productive assets, such as factories, mines, and farms. Third, the government sets prices for goods and services, and it also allocates resources, such as labor and capital.

Planned economic systems have a number of potential advantages. First, they can allow the government to focus on long-term economic goals, such as economic growth, social welfare, and environmental sustainability. Second, they can reduce economic inequality, as the government can use its authority to ensure that everyone has access to basic goods and services. Third, they can promote economic stability, as the government can use its tools to prevent economic crises, such as recessions and depressions.

However, planned economic systems also have a number of potential disadvantages. First, they can be inefficient, as the government may not be able to accurately predict the needs of the economy. Second, they can stifle innovation, as the government may be reluctant to allow new products or services to enter the market. Third, they can lead to corruption, as government officials may have opportunities to enrich themselves through their control over the economy.

Overall, planned economic systems are complex and have both advantages and disadvantages. Whether or not a planned economic system is successful depends on a variety of factors, such as the government's ability to implement its policies effectively, the country's level of economic development, and the political and social context in which the system is implemented.