Table of Contents
Who does a command economy benefit?
In the end, consumers will be the ones to benefit from this type of system. 2. Mobilization of resources is streamlined. Another advantage of command economy is the power of the central authority to demand higher production of goods needed in case of emergency situations like famine and war.
Who benefits and who suffers from a command economy?
Who benefits and who suffers most from a centrally planned economy? How? Government officials benefit because they can favor themselves; ordinary people suffer from lack of freedom and choices.
What is a disadvantage of a command system?
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 are some of the benefits of a command economy?
It does not have a room for monopoly. With a central authority chosen by the government to dictate on the number of goods to be produced and prices manufacturers can ask for, it will be hard for suppliers of staple products to control the market. In the end, consumers will be the ones to benefit from this type of system…
What are the advantages and disadvantages of command economies?
There are benefits and drawbacks to command economy structures. Command economy advantages include low levels of inequality and unemployment, and the common good replacing profit as the primary incentive of production. Command economy disadvantages include lack of competition and lack of efficiency.
What are the features of a command economy?
The key feature of a command economy is that central government and its constituent organisations take responsibility for a number of things. Planning the long-term growth of the economy. Reallocating resources from one line of production to another.
What are the goals of a command economy?
The goal of a command economy is to sustain self-sufficiency. preserve traditional customs. create equality within a society. promote free economic choices.