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Command Economy:

Decision making is decentralized.
Discourages new ideas.
Low-income citizens receive public services.

A. True
B. False

User Magiraud
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1 Answer

1 vote

Final answer:

The statement about a Command Economy is false as it is highly centralized, not decentralized, and may discourage new ideas due to government control. However, low-income citizens often receive public services. In contrast, market economies are decentralized and promote innovation.

Step-by-step explanation:

The statement about a Command Economy being decentralized and discouraging new ideas with low-income citizens receiving public services is false. In a command economy, decision-making is highly centralized within the government, which owns and operates the means of production. This approach often discourages new ideas since innovation typically requires a level of freedom not present in these economies. However, it is true that low-income citizens may receive certain public services as the government controls resource distribution.

On the other hand, market economies feature a decentralized decision-making process, where private individuals or groups own and operate businesses. These economies encourage innovation and base the supply of goods and services on demand. Personal income in market economies is directly related to an individual's ability to produce something of value to society.

User Molivier
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