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Economics glossary · The economic problem

Long-term planning

What long-term planning means in economics, as one of the case for each system, with an example and a question to test yourself.

Definition
Long-term planning
A government that owns the resources can direct them at long-run goals, such as railways or power stations, faster than private firms might.
Example

Can you think of an example of long-term planning?

Test yourself

Can you name two advantages of a market economy and two of a command economy?

Learn it properly: the module

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