ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Shortage of capital investment
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Surplus of consumer goods
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Poor quality products
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High income taxes
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Detailed explanation-1: -Command economy advantages include low levels of inequality and unemployment and the common objective of replacing profit with equality as the primary incentive of production. Disadvantages of command economies include lack of competition, which can lead to lack of innovation, and lack of efficiency.
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: -What are the characteristics of a command economy? A command economy has a small number of typical elements: A central economic plan, government ownership of the means of production, and (supposed) social equality are essential features of a command economy.