Question

what is meant by a \planned\ economy? who is doing the planning? government as control over the resources. who owns the factors of production (aka. resources) in a market economy? the land and resources is controlled by firms. why are modern economies neither a completely free market nor planned?

Explanation:

A planned economy is one where the government makes major economic decisions like production, distribution, and resource - allocation. In a market economy, factors of production like land can be owned by private individuals, firms, and households, not just firms. Modern economies are a mix because free - markets can lead to inefficiencies like monopolies and externalities, while full planning can lack innovation and consumer choice.

Answer:

What is meant by a "planned" economy?

• A planned economy is an economic system where the government makes key decisions regarding production, distribution, and resource - allocation.

Who is doing the planning?

• The government.

Who owns the factors of production (aka. resources) in a market economy?

• Private individuals, firms, and households.

Why are modern economies neither a completely free market nor planned?

• Free markets can have inefficiencies such as monopolies and externalities, while fully planned economies may lack innovation and consumer choice, so a mix is preferred.