Question

Which of the following is the distinguishing advantage of a controlled economy? Group of answer choices

It makes the welfare of citizens a priority.
It promotes the efficient use of resources.
It eliminates the pressures of supply and demand.
It causes the most competent people to rise to the top.

Answer 1

One of the advantages of a controlled economy is that it promotes the better use of power.

Explanation:

The controlled economy (command economy) is an economic system in which the quantity and the means of production are decided by the central authority of that nation or state. After deciding, the production quotas are planned for every enterprise.

The price of the products is also fixed by the central authorities. For a larger economy, this seems to be difficult. The production quantity is stated in terms of physical units and raw materials are also allocated to the firms by the central authority.

Some of the countries that follow controlled economy are Cuba, North Korea, etc, Few advantages of this economy are as follows,

• Reduced unemployment

• Replacing profit as the production incentive

• Less inequality

Answer 2

it makes the welfare of the citizen a priority

Step-by-step explanation:

controlled economy is also known as command economy. in this kind of economy, government decides what and how to produce. there is no stress of competition and no high profit margins preference.