BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -One advantage of communism for managers in a communist country is their freedom to decide what to produce. The average profit earned by a business today is about 5 percent of total receipts. The primary incentive for a business to produce goods or services in the United States is profit.

Detailed explanation-2: -A command economy does not allow market forces like supply and demand to determine what, how much, and at what price they should produce goods and services. Instead, a central government plans, organizes, and controls all economic activities, discouraging market competition.

Detailed explanation-3: -What is the major advantage to a market economy? The market gives producers an incentive to produce goods that consumers want.

Detailed explanation-4: -Which statement describes a disadvantage of a command economy? Nothing stops the government from producing things that people don’t need or want.

Detailed explanation-5: -One way a command economy affects the lives of private citizens is that the citizens may have less say in what gets produced and how it gets distributed, that is, they have no say in making economic decisions.