ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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individuals trying to start a new business
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workers forced to do jobs they did not care to do
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local crafts produced before manufactured goods
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government planners set prices for goods produced
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Detailed explanation-1: -Disadvantages of command economies include lack of competition, which can lead to lack of innovation, and lack of efficiency.
Detailed explanation-2: -Criticism of Centrally Planned Economies In a planned economy, there are no price signals, so planners cannot accurately forecast which products will be needed or adapt to changing conditions. This means that there may be unnecessary shortages or surpluses of certain goods.
Detailed explanation-3: -What are some disadvantages of centrally planned economies? Consumers cannot choose and only those goods and services are produced which are decided by the government. Lack of profit motive may lead to firms being inefficient.
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.