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Planned Economy

/plænd ˈɛkəˌnɑmi/
nounCEFR B2 (Upper)Top #15000 frequency
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Comprehensive Definitions & Senses

2 senses
As noun
  1. 1

    An economic system in which the government or central authority makes all decisions regarding the production and distribution of goods and services.

    "In a planned economy, the government determines what goods are produced and how they are distributed."
  2. 2

    A system where economic activity is regulated by a central plan rather than market forces.

    "Countries with a planned economy often face challenges in efficiency and innovation."

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Linguistic Origin & Historical Etymology

The term 'planned economy' combines 'planned', derived from the Old English 'planian', meaning to arrange or organize, and 'economy', from the Greek 'oikonomia', meaning household management. The concept evolved in the 20th century, particularly in socialist contexts, to describe an economic system where production and distribution are controlled by the state.

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