Read the following text carefully and answer the questions 1-2 on the basis of the same:
In a centrally planned economy, the government or the central authority plans all the important activities in the economy. The central authority may try to achieve a particular allocation of resources and a consequent distribution of the final combination of goods and services which is thought to be desirable for society as a whole. For example, if it is found that a good or service which is very important for the prosperity and well-being of the economy as a whole is not produced in adequate amount by the individuals on their own, the government might try to induce the individuals to produce adequate amount of such a good or service or, alternatively, the government may itself decide to produce the good or service in question.
1. State one difference between centrally planned economy and market economy.
2. State three characteristics of a centrally planned economy.