What Is The Phenomenon Of Advanced Calculation In Limitations Of Economic Planning?
According to some economists the market economy runs on the basis of prices, i.e. all the activities of allocation, production and exchange are performed on the basis of prices. But in planned economy there is no such like mechanism of prices. As in planning, choices have to be made before the occurrence of an event or operation of the economy, then it is impossible to make advanced calculations. The calculations would be accurate if the planners would have established some exact compatibility between demands of consumers and scares resources of the society. How cumbersome it would be to make calculations are made, yet it is difficult to put them in practice. But the proporients of the planned economy are of the view that the above problem can be resolved with the help of trial and error method. Furthermore, they say that certain important decisions be entrusted into hands of planning machinery and certain other important decision may be performed through market. The public enterprises
