<P> Economic planning is a mechanism for the allocation of economic inputs and decision - making based on direct allocation , in contrast to the market mechanism , which is based on indirect allocation . An economy based on economic planning appropriates its resources as needed , so that allocation comes in the form of internal transfers rather than market transactions involving the purchasing of assets by one government agency or firm by another . Decision - making is carried out by workers and consumers on the enterprise - level . </P>
<P> Economic planning is a mechanism for the allocation of economic inputs and decision - making based on direct allocation , in contrast to the market mechanism , which is based on indirect allocation . An economy based on economic planning appropriates its resources as needed , so that allocation comes in the form of internal transfers rather than market transactions involving the purchasing of assets by one government agency or firm by another . Decision - making is carried out by workers and consumers on the enterprise - level . </P>
who decides what to produce in a socialist economy
who decides what to produce in a socialist economy
workers and consumers on the enterprise - level
workers and consumers on the enterprise - level