What is a major disadvantage of a command economic system?

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BlackTom AI · Accepted Answer

Exploring the question on the major disadvantage of a command economic system, we can analyze each option in turn.
Option a: 'Lack of incentives to work or be creative' This is a well-known critique of command economies: when the state controls production and rewards, individual motivation to innovate or exert extra effort can be diminished because rewards are often not tied to personal performance. This reasoning aligns with economic theory on incentives and efficiency.
Option b: 'Too much individual freedom' In a command economy, the opposite is true: individual freedom is typically restricted rather than abundant, as the government makes key economic decisions and controls resources. This choice mischaracterizes the system.
Option c: 'Limited government involvement' Again, this is inaccurate for a command economy. The defining feature is extensive government planning and control over production, not limited involvement. This option describes a market-like or libertarian scenario, not a command system.
Option d: 'It leads to wealth inequality' Command economies aim to reduce or eliminate wealth inequality by distributing resources according to planned goals. While outcomes can vary, this description does not capture the core disadvantage posed by the lack of incentives; in many cases, inequality is not the primary or most inherent flaw highlighted in analyses of command systems.
Overall, the most accurate disadvantage among these statements centers on the motivational issue: the structure tends to blunt incentives for work and creativity, which can hamper efficiency and innovation compared with more incentive-driven systems. The remaining options describe conditions that do not accurately reflect a command economy's typical dynamics.

25_2 PHL4100 M Philosophy od Enterprise

What is a major disadvantage of a command economic system?

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