Which of the Following Are Weaknesses of a Command-Based Economic

question 25

Multiple Choice

Which of the following are weaknesses of a command-based economic system? ​

• A) ​It is not possible for goods to be allocated based on need rather than based on willingness and ability to pay.
• B) ​Producers have incentives to innovate because successful innovators are not rewarded with higher profit.
• C) ​Since price is set by central planners, price cannot freely adjust to resolve shortages or surpluses based on current supply and demand conditions.
• D) ​Answers b. and c. above are correct.

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Definitions:

Constructive Dismissal

A situation where an employee resigns due to an employer's behavior that effectively forces them out, typically because of making their working conditions intolerable.

Lesser Status

A condition or position that is regarded as being of lower importance, value, or prestige compared to others.

Compensation Package

The total collection of wages, benefits, bonuses, and other financial incentives offered to employees by an employer.

Alberta Energy

The sector of the economy in Alberta, Canada, focused on the extraction, production, and distribution of energy resources like oil and gas.