ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Guaranteed pay
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Shortages
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Poor quality goods
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Lack of flexibility
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Detailed explanation-1: -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.
Detailed explanation-2: -Ans: Some of the disadvantages of a planned economy include inefficient resource allocation, lack of innovation and creativity and poor social planning. Another primary reason why most planned economies fail is the lack of information regarding market demand.
Detailed explanation-3: -Characteristics of centrally planned economies pertain to ownership, sovereign decision making, price setting, distribution, production, economic decision making, incentives, and political control.
Detailed explanation-4: -Lack of competition and associated efficiency. Lack of freedom. Lack of innovation. Lack of incentive for hard work. Increased chance of corruption.