Final answer:
It is false that a command economy might be preferred because producers have more incentive to create a variety of goods to satisfy consumers. In a command economy, the government determines production, limiting producers' incentive to diversify or respond to consumer demands, unlike in a capitalist economy.
Step-by-step explanation:
The statement that a command economy might be preferred to a capitalist economy because producers have more incentive to produce a wide variety of goods that satisfy consumers is false. In a command economy, it is the government that decides what goods and services will be produced, and which methods of production to use, and it sets wages for workers.
Since the government sets strict controls over these aspects, individual producers have less incentive to diversify products or to be responsive to consumer demands. In contrast, a capitalist economy relies on market forces where producers have more of an incentive to produce a variety of goods because they need to meet consumer needs to remain competitive and profitable.
Command economies provide many necessities like healthcare and education for free, which may be seen as a strength, but they also tend to suffer from a number of disadvantages. These include little incentive to work harder or better, a large bureaucracy, lack of flexibility, and no rewards for individual initiative, resulting in a market that often does not cater to consumers' wants or needs. Current examples of command economies are Cuba and North Korea.