HELP!!!!! WILL GIVE MEDAL!!!!

Consider the centrally planned economy of the Soviet Union or China. Choose one and explain how its experience shows the problems with a centrally planned economy.

If possible could you please explain this in simple terms so that I can fully understand the answer. Thanks!

Question

HELP!!!!! WILL GIVE MEDAL!!!!

Consider the centrally planned economy of the Soviet Union or China. Choose one and explain how its experience shows the problems with a centrally planned economy.


If possible could you please explain this in simple terms so that I can fully understand the answer. Thanks!

anonymous · Answer

Okay a centrally planned economy is one which is government run- the government controls interactions between consumer and producer, so price. All you need to do is explain the negatives of a government run economy such as the Soviet Union.

anonymous · Answer

This wiki link provides general information about the problems faced by centrally planned economies ( http://en.wikipedia.org/wiki/Planned_economy#Disadvantages_of_economic_planning). You need to search for different historical examples to show how it panned out in either of the countries (although China is centrally planned it has been progressively getting more free).