The correct answer is Centralized Planning. • Centralized Planning: It is an economy where decisions on production, methods of production, and target consumers are taken by the government in a centrally managed bureaucracy. Central planning is also referred to as a Command economy or Communist economy. • Important features of a Centrally planned economy: • Ownership is under the government. • Prices are usually set by price controls rather than market forces. • Production could be planned for five or ten years in advance. • Scope for corruption due to the power of bureaucrats. • Problems of Central Planning Economies: • Government predictions about future trends are often inaccurate. • Lack of incentives when income is guaranteed. • Flexibility issues because of which it's difficult to respond to shortages and surpluses. • Greater scope for corruption because power stays with top bureaucrats. • Planned economies often associated with greater political interference. • Other types of planning given in option: • Democratic Planning: Democratic planning aims at the removal of inequalities of income and wealth through peaceful means like taxation and government spending on social welfare and social security schemes. • Indicative Planning: It is a form of national economic planning in which a target is set for the growth of national output over a series of years, usually five years. • Development Planning: It is the same as indicative planning.