What are some disadvantages of a command economy quizlet?

What are the advantages and disadvantages of a command economy? Advantages: Can quickly and dramatically change if needed by shifting resources. Disadvantages: It does not meet the demands of consumers, it does not give people a reason to work hard, and it requires a large decision-making government agency.

What are some disadvantages of centrally planned economies?

What are some disadvantages of centrally planned economies? Consumers cannot choose and only those goods and services are produced which are decided by the government. Lack of profit motive may lead to firms being inefficient.

What are the disadvantages of a mixed economy?

There is more emphasis on profit at the expense of the welfare of the citizens. There is usually high level of corruption and mismanagement. Wealth is not equitably distributed as there is a gap between the rich and the poor.

What describes a command economy?

command economy, economic system in which the means of production are publicly owned and economic activity is controlled by a central authority that assigns quantitative production goals and allots raw materials to productive enterprises.

What are the advantages and disadvantages of command economy?

Command economy advantages include low levels of inequality and unemployment, and the common objective of replacing profit as the primary incentive of production. Command economy disadvantages include lack of competition and lack of efficiency.

What is the disadvantages of economic growth?

Next, the major disadvantage of economic growth is the inflation effect. Economic growth will cause aggregate demand to increase. If aggregate demand increases faster than the increases in aggregate supply, then there will be an excess demand but a shortage in supply in the economy.

What are the advantages and disadvantages of economic growth?

For example, better infrastructure enables a lower cost of trade. Therefore, growth can cause a virtuous cycle of higher investment leading to higher growth – which enables more investment. Lower unemployment. Higher economic growth will also lead to an increase in demand for labour as firms will be producing more.

What is a disadvantage of central planning *?

Disadvantages. The disadvantages far outweigh the advantages of a centrally planned economy. The main disadvantage of centrally planned economies is the vast inefficiency that comes from ignoring natural market forces.