Communism
This is an example of central planning in which everything is directed by the government. These types of economies tend not to do well because as the question states the incentive for individuals is taken away.
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I believe the answer is: constitution in Article I
The article I of the constitution directly state the power of the Congress along with its limitation. They specify that congress is the one that has the power to create the laws in united states and they have to be separated into two sections (the senates and the house of representatives)
