In a centrally planned economy, who makes the majority of economic decisions?

In a centrally planned economy, the government plays a dominant role in making the majority of economic decisions. This involves determining what goods and services are produced, how they are produced, and for whom they are produced. The government's involvement is central to the structure of this type of economy, as it seeks to manage resources and control production to meet the needs and goals of the state or society as a whole.

In contrast, in market economies, consumers and private businesses have more influence in decision-making, guided by supply and demand dynamics. Local governments might also wield some powers, but their influence is often limited compared to the overarching control of the national government in a centrally planned system. Thus, the primary focus on government decision-making in a centrally planned economy highlights its fundamental characteristics, ensuring that economic activity aligns with the plans and priorities set by national leadership.