In a centrally-planned economy:

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In a centrally-planned economy, the government controls prices and output of goods bought and sold, with minimal recognition given to considerations of efficiency. This means that decisions about resource allocation and production are made by government planners rather than independent buyers and sellers in the market. Prices are set by the government rather than being determined by supply and demand, and are used to ensure that goods are distributed based on the government's priorities rather than consumer preferences or income levels.

In a Centrally-Planned Economy