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Development may be inhibited in command economies because..

1. Government controls productivity
2. Businesses focus on. Subsistence agriculture
3. Business prevent specialization
4. Individuals prohibit industrialization

2 Answers

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Final answer:

Command economies may experience inhibited development due to government control over productivity, which leads to a stagnant economic environment with little incentive for innovation or improvement.

Step-by-step explanation:

Development may be inhibited in command economies for several reasons, primarily because in such economies government controls productivity. Unlike market economies, command economies lack the private property rights that create incentives for individuals to improve production and innovate. For example, if additional effort and investment in agriculture lead to no personal gain, as was the case in China with family-owned farms, there is little motivation to work harder or smarter. This lack of incentive contributes to a stagnant marketplace, which is a notable disadvantage in command economies where the central planners make all production decisions. Countries like Cuba and North Korea, which have command economies, face challenges such as a lack of incentives for work efficiency and innovation, a large bureaucracy, and little to no rewards for individual initiative, resulting in a stagnant economic environment.

User Vasilevich
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development may be inhibited in command economies because :
1. Government controls productivity
in command economies, the government basically regulate everything, including what to produce and its selling price

hope this helps
User James Johnson
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