ECONOMICS (CBSE/UGC NET)

ECONOMICS

ECONOMIC SYSTEMS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A major problem for individuals and private businesses in a socialist command economy is:
A
a lack of competition.
B
taxes.
C
a shortage of consumer goods.
D
profit.
Explanation: 

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: -KEY Points. Disadvantages of socialism include slow economic growth, less entrepreneurial opportunity and competition, and a potential lack of motivation by individuals due to lesser rewards.

Detailed explanation-3: -Both socialism and communism are types of a command economy. In all three, the government controls businesses, resources, and economic activity in the country.

Detailed explanation-4: -Socialism and the Command Economy In socialist countries, the state centralizes and controls economic decisions. A dictator or central planning committee decides what goods will be made, who will make it, how much to make, and who will buy it. The state does not control labor.

There is 1 question to complete.