BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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There are high taxes.
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Supply and demand control what will be produced.
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Individuals run the risk of losing their business
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There is no competition.
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Detailed explanation-1: -Q. Which of the following is a problem associated with communist command economies? There are high taxes. Countries whose governments provide citizens with free medical care, education, and other benefits often are referred to as states.
Detailed explanation-2: -Which of the following is a problem associated with communist command economies? There is no competition.
Detailed explanation-3: -Any capitalist would argue that command economies face at least two major problems: first is the incentive problem and second is an information vacuum among the central planners making all the decisions. The incentive problem starts at the top.
Detailed explanation-4: -Some of the cons include a lack of efficient resource allocation, lack of innovation, and the needs/preferences of society may be ignored due to poor planning.