Question

_________ never really works for an economy because there's little innovation and no reward for starting a business, as well as an unmotivated labor force because workers are often assigned jobs.

Answer 1

A command economy often results in a stagnant economy with little innovation and motivation due to centralized control and the lack of a free labor market, making it difficult for workers to connect to a labor market and access social benefits or better job opportunities.

Step-by-step explanation:

The student's question is addressing the challenges associated with a command economy. In such an economic system, the state controls all major aspects of economic activity, including what is produced, how it is produced, and who receives the output. This level of control typically results in a lack of innovation and few rewards for entrepreneurship, leading to an unmotivated labor force. Workers in a command economy are often assigned jobs, which can prevent the specialization and trade that characterize market economies. In addition, workers may lack connection to a labor market, making them ineligible for social benefits and limiting their ability to seek better opportunities. For low-income countries, connecting workers to stable, wage-paying jobs is crucial for reducing poverty. To address these issues, policies may need to be redesigned to encourage businesses to hire, improve job information flow, and provide retraining for the structurally unemployed.