Centrally Planned Economies

Heavy industry

Industry that requires a large capital investment and that produces items used in other Industries

Which of the following is an advantage of a centrally planned economy?

It tries to meet explicitly stated goals

Why might a socialist society have less rigid command economy than a communist Society?

In a socialist society, various political systems may be combined with public control of the economy.

How do socialism and communism differ?

In socialist countries, the government often owns major industries. Socialism is achieved peacefully for democracy. In communist Nations, all economic and political power rest in the hands of the central government. Communist governments are authoritarian.

Socialism

A social and political philosophy based on the belief that Democratic means should be used to distribute wealth evenly throughout a society

Which of the following is not a characteristic of a centrally planned economy?

Each collective or factory sets its own goals.

In what ways did Soviet collectives offer little incentive to Farmers?

The government paid Farmers set wages and told them what to produce, that's providing very little incentive for Farmers to produce more or to improve quality or efficiency

Why might Soviet economic planners have favored heavy industry over the makers of consumer goods?

The products of heavy industry provided material for many other Industries

Communism

Characterized by a centrally planned economy with all economic and political power resting in the hands of the central government

Collectives

Large Farms least from the state two groups of peasant farmers

Authoritarian

Requiring strict obedience to Authority such as a dictator