How are resources allocated in a planned economic system in about 100 to 150 words
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Resources may be allocated by the tradition, by markets, or by planning. In a traditional economy, goods and resources are allocated according to historical patterns. However, in a market economy, goods and resources are allocated according to decisions of individual producers and consumers. In a free market economy, resources go to when they are needed the most. For instance, the there is a natural disaster, the demand for emergency items like bottled water and emergency generates go up. This increases the price, so retailers more of a profit by delivering more of these goods to the area effected by the disaster.
However, in the planned economy, there are no such market signals. Resources are sent wherever clueless public officials think they should go, which is usually wrong. The result is always shortages of some goods in some places, surpluses of goods nobody wants in other places, people waiting in line when goods do show up, and people hoarding quantities they dont even intend to use because they now that they can trade for foods they do want, so a black market spring up-to to solve the problems caused by the central planning.
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A capitalist economy relies on free-markets to determine, price, incomes, wealth and distribution of goods. A socialist economic system is characterised by greater government intervention to re-allocate resources in a more egalitarian way. There are also different aims of the economic systems.