Question

Give any two features of centrally planned economy

Answer 1

A centrally planned economy is run by the government of a country rather than being run by the decisions of private individuals.

1.State owned businesses undertake major goods and services production. 

2. The interaction of private owners and consumers does not set the market price of a good/service within an economy, instead it is set by the government and government regulates the prices and quantities of all commodities. 

Hence, there is no role of the invisible hand (supply and demand resources) in a centrally planned economy.