To do this, they would need to have knowledge of alternative production techniques and select the most efficient method. This information would then be relayed to producers. Finally, the central planners could distribute the economy's output in accordance with any objectives they desired -to achieve. In the U.S. 'economy there are several elements of command socialism. Some enterprises are publicly owned.
Economic planning is designed to coordinate economic decision-making in a command economy.
For instance, if steel manufacturers are going to be asked to increase their output of steel, iron ore manufacturers and others who supply inputs to the steel industry must increase their output sufficiently to make this increased steel output possible. In a market economy, the job of coordinating economic decisions is performed by markets and prices. See Exhibit 2.1. Note that there are both product markets and resource markets indicated on the flow diagram. It is in these markets that the prices of products and resources are determined.