Identify the advantages and disadvantages of a command economy.
Answer (2)
Good things
Government can control market failure
It help optimize social welfare
It prevents monopoly
Bad things
Lack of efficiency
No rewards
A command economy is controlled by the government, offering advantages like eliminating market failures and focusing on social welfare. However, it faces disadvantages such as inefficiency, limited consumer choice, and reduced incentives for citizens to innovate. Overall, it aims to provide for everyone's needs but can struggle to adapt to changes in demand or improve productivity.
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