Question

What does a centrally planned economy oppose that a market economy encourages?

Answer 1

centrally planned economy relies on a party in power to decide what resources should be allocated to various demands as they see.

Answer 2

A centrally planned economy opposes individual choice in comparison to a market economy.

In a centrally planned economy, a government entity decides how resources within a society will be distributed. For example, in a perfect centrally planned society, all families with 4 members in the household would receive the exact same products.

However, in a market economy, individuals make decisions for themselves regarding what resources they want/need to purchase. This market economy is based more on the capital (money) that individuals possess.