Question

Select all items that describe command economies.

inefficient

limited selection

shortage of goods

high standards of living

Answer 1

Inefficient and limited selection describe a command economy. In a command economy, prouction, investment, prices and incomes are controlled by the government. Since the government makes all of the decisions, it's not always the most efficient for the economy because they do not take everything into consideration, they just pick and chose what they want to see happen. There is often a limited selection of items because the free market isn't helping businesses make business decisions.

Answer 2

A command economy is yes inefficient because if the government will be the one to dictate the price of goods and what goods can be produced, then obviously the businesses will have to will to produce. They will just be following what the government says and will not give their whole heart to it. This will make the production of goods and services inefficient. Also, there will be a limited selection because if the will of the workers are hindered, then there will be no innovations and inventions