Question

What was centralised planning ?How did it improve industrial production? Class 9. History

Answer 1

Answer:

Explanation:

Answer to the first part of the question

Economic planning has different forms.  A planned economy is mainly based on a well sort out planning. A centralised planned economy refers to such a  system where the economic decisions are executed by a single authority such as the state or central government without involving any meaningful interaction between consumers and businesses.

Answer to the second part of the question

Centralised planning is also referred as Command Economy. This economy helps in overcoming the fear of market failure and works towards equality of distribution. When an economy works under free market condition it leads to a monopolistic market which exploit consumers. This is were centralised planning works wonder for the consumers as it helps in fair distribution amongst them rather than concentrated only on the capitalist class.

In a centralised economy the state or the central authority decides upon the quantum of production,supply and price of the goods and services. This helps in overcoming surplus production and restrict wastage.

Under this economy the issue of unemployment is also handled with greater intent as employment of labor is influenced by the state. Each workers are involved in some activity or the other.

Hope this helps.