Asked by Maggie Simcoe on Jul 20, 2024
Verified
Explain the implications of economic planning.
Economic Planning
The process by which major economic decisions are made or influenced by central governments, including policies regarding the distribution of resources and national objectives.
- Understand the role and impact of economic planning in contemporary societies.
Verified Answer
SD
Sabrina Danelle
Jul 21, 2024
Final Answer :
Students' answers may vary.
Economic planning is defined as long-term decisions by either government or corporations about what and how much to produce.Modern corporations engage in economic planning and try to dominate markets and control their environment, which is exactly what free-market economists don't like about government.Corporate managers must decide far in advance what to do with investments such as where to build factories, what workers to hire, and how much to pay the CEOs.None of these decisions is determined by the market.Furthermore, consumer demand doesn't fully determine what items are produced.Consumer demand doesn't grow by itself, but is often created and manipulated via advertising and marketing.Many Americans spend beyond their means, partly due to viewing ads that promote consumption.
Economic planning is defined as long-term decisions by either government or corporations about what and how much to produce.Modern corporations engage in economic planning and try to dominate markets and control their environment, which is exactly what free-market economists don't like about government.Corporate managers must decide far in advance what to do with investments such as where to build factories, what workers to hire, and how much to pay the CEOs.None of these decisions is determined by the market.Furthermore, consumer demand doesn't fully determine what items are produced.Consumer demand doesn't grow by itself, but is often created and manipulated via advertising and marketing.Many Americans spend beyond their means, partly due to viewing ads that promote consumption.
Learning Objectives
- Understand the role and impact of economic planning in contemporary societies.
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