Question

All of the following are TRUE about a command economy except:

A. consumer wants are met
B. entrepreneurship is discouraged
C. there is little incentive to work hard
D. the economy does not adjust to changing conditions

Answer 1

The correct answer is A) consumer wants are met.

The statement that is not true about a command economy is "consumer wants are met."

In a Command economy, the central government controls all the means of production. The government decides what to produce, when to produce it, how much to produce, and the price of goods. In a Command economy there is no competition and basically no incentives for the workers. The consumer has to buy only what the government decides to produce. This economy is the opposite of a free market economy where supply and demand regulates the economy, there is competition between companies, and the worker can have bonuses and promotions.

Answer 2

A. consumer wants are met

Many things that are produced are for " ' the good of the people' ", but it provides very little "wants", and more on "needs", leading to a people who find little incentive to continue to work


hope this helps