ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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they are happy with their government
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they have all their wants and needs met
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they are experiencing shortages
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they are all happy with their jobs
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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: -Disadvantages of Command Economy Lack of incentives: In a command economy, the government controls all the means of production and makes all the decisions about what goods and services will be produced. This can lead to a lack of incentives for innovation and entrepreneurship, which can hinder economic growth.
Detailed explanation-3: -Command economies often make too much of one product and not enough of another because it is difficult for one entity (i.e., the government) to realize the needs of everyone in the country. So, a command economy often means large surpluses or shortages of products and services.
Detailed explanation-4: -Command societies may address the problem of scarcity by rationing. Rationing is the deliberate distribution of fixed amounts of resources to individuals.