1. Centrally Planned Economy

2. Opposite of a Free Market Centrally Planned Economies Oppose *Private property *Competition *Consumer choice The government owns the factors of production.

3. The government answers the key economic questions of production and consumption. A central bureaucracy makes all the decisions about the economy and tells firms what and how much to produce.

4. Controls where people work and the wages they receive. The government directs workers to produce a certain number of an item otherwise known as a quota.

5. Central planners determine the assortment of goods to be produced, allocate raw materials, fix quotas for each enterprise, and set prices.

6. Most communist countries have had command economies; capitalist countries may also adopt such a system during national emergencies (e.g., wartime) in order to mobilize resources quickly.

7. Socialism Based on the belief that democratic means should be use to distribute wealth evenly throughout society. The public should control the centers of economic power. Often owns major industries May be a democracy Communism Arose out of socialism All economic and political power rests in the hands of the central government. Are authoritarian and demand strict obedience. Believe a socialist society can only come out of a violent revolution.

8. Today, planned economies exist in only a few countries such as Cuba, Iran, North Korea, Saudi Arabia, and BurmaCubaIranNorth KoreaSaudi ArabiaBurma