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Define the planned or command economy system.
Planned or command economy:
Resources are owned through the state. The state assigns resources, and sets production goals and growth rates as per its own view of people's requirements. Income distribution is decided through the state. Prices play small or no part into informing resource allocation decisions as well as queuing rations scarce goods.
Explain the concept of scarcity, and the role it plays in decision making
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explain how inflation could reduce the efficiency with which prices allocate resources.
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