Question

Why are command economies usually less efficient than market economies?

A.) Governments in command economy countries are uninterested in prices or quality.
B.) Command economies become too ruthless to care about the consumer.
C.) The competition in market economies encourages both quality and low prices.
D.) Governments in market economy countries demand efficiency in their firms.

Answer 1

Command economies are usually less efficient than market economies because the competition in market economies encourages both quality and low prices. Command economy is an economy in which production, investment, prices, and incomes are determined centrally by a government. The correct answer between all the choices given is the third choice or letter C. I am hoping that this answer has satisfied your query and it will be able to help you in your endeavor, and if you would like, feel free to ask another question.

Answer 2

The correct answer is C.) The competition in market economies encourages both quality and low prices

Free market economies enable competition and creation of goods for cheap prices more than command economies.