Question

What is a major disadvantige of a centrally planned economy

Answer 1

Lack of competition

Step-by-step explanation:

A centrally planned economy lack competitiveness. The government decides what to produce, the price, and the distribution channel. Because of these restrictions, there is no motivation for profits. Without competition, a centrally planned economy will have the following features.

1. There be a lot of inefficiency and wastefulness.
2. Consumers will not have a variety of goods and services to choose from in the markets.
3. Businesses will make low profits.