In which type of economy do government planners decide what goods and services are produced?

In a command economy, the government has significant control over the production and distribution of goods and services. This means that planners within the government make decisions regarding what to produce, how much to produce, and the prices at which goods and services are sold. This centralized decision-making is aimed at achieving specific economic and social goals, such as ensuring equitable distribution of resources or stabilizing the economy.

In contrast, other types of economies function differently. A traditional economy relies on customs, traditions, and historical practices to guide economic decisions, where production often focuses on subsistence. In a market economy, decisions about production and consumption are determined by the free interplay of supply and demand within the marketplace, allowing consumers and producers to make choices based on individual needs and preferences. Lastly, a mixed economy incorporates elements of both command and market systems, allowing for both private enterprise and significant government intervention in economic activities.

Thus, the distinct characteristic of a command economy is the government’s role in planning and directing all significant economic activities, determining the types of goods and services produced.