Question

One of the basic arguments that capitalism uses against command economies is that:_______.

a) capitalism is more equitable because it distributes its resources equally among citizens.
b) capitalism is more efficient because the existence of private property creates/generates incentives for the economy to grow and develop.
c) command economies are efficient in the distribution of goods and services but lack incentives.

Answer 1

c) command economies are efficient in the distribution of goods and services but lack incentives.

Step-by-step explanation:

Command economies are better than free economies in the sense that resources are directed in a particular way which is considered to most efficient and equitable way for people and economy . Free economies give rise to predatory tendencies among stakeholders which may not be most efficient way of generation of wealth.

But it suffers from the weakness of lack of incentive for future growth.

This is what is argued in favor of capitalism.