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A principal feature of a command economy is that ______________________.
- a)Production decisions are made by profit-maximizing firms.
- b)There is a central planning board at the top, which transmits economic decisions down to the various producing and consuming units below.
- c)Consumers are allowed to determine what is produced based on their demand for goods and services.
- d)Regulatory agencies constrain the most egregious forms of market power in a market system of allocation.
Correct answer is option 'B'. Can you explain this answer?
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A principal feature of a command economy is that _____________________...
Command Economy and its Principal Feature
A command economy is an economic system in which the government or a central planning authority controls all major aspects of economic activity. In a command economy, the government makes all the decisions about what goods and services are produced, how they are produced, and who gets them. Let's discuss the principal feature of a command economy.
Central Planning Board
The principal feature of a command economy is that there is a central planning board at the top, which transmits economic decisions down to the various producing and consuming units below. This central planning board is responsible for setting production targets, allocating resources, and making decisions about what goods and services are produced and distributed. This means that the government has complete control over the economy, and there is no room for individual decision-making or market forces to influence economic outcomes.
Role of Government
The role of government in a command economy is to ensure that resources are allocated efficiently to meet the needs of the population. The government decides what goods and services are produced and how they are distributed. It also controls prices, wages, and interest rates to ensure that the economy operates efficiently. The government also owns and controls all major industries, which means that there is no private ownership of production.
Advantages and Disadvantages
The advantages of a command economy are that it can lead to rapid industrialization, economic growth, and the provision of essential goods and services to the population. However, the disadvantages are that it can lead to inefficiency, waste, and a lack of innovation. The lack of individual decision-making and market forces can also lead to shortages of goods and services and a lack of consumer choice.
Conclusion
In conclusion, the principal feature of a command economy is the central planning board, which controls all major aspects of economic activity. This means that the government has complete control over the economy, and there is no room for individual decision-making or market forces to influence economic outcomes. While a command economy can lead to rapid industrialization and economic growth, it can also lead to inefficiency, waste, and a lack of innovation.
A command economy is an economic system in which the government or a central planning authority controls all major aspects of economic activity. In a command economy, the government makes all the decisions about what goods and services are produced, how they are produced, and who gets them. Let's discuss the principal feature of a command economy.
Central Planning Board
The principal feature of a command economy is that there is a central planning board at the top, which transmits economic decisions down to the various producing and consuming units below. This central planning board is responsible for setting production targets, allocating resources, and making decisions about what goods and services are produced and distributed. This means that the government has complete control over the economy, and there is no room for individual decision-making or market forces to influence economic outcomes.
Role of Government
The role of government in a command economy is to ensure that resources are allocated efficiently to meet the needs of the population. The government decides what goods and services are produced and how they are distributed. It also controls prices, wages, and interest rates to ensure that the economy operates efficiently. The government also owns and controls all major industries, which means that there is no private ownership of production.
Advantages and Disadvantages
The advantages of a command economy are that it can lead to rapid industrialization, economic growth, and the provision of essential goods and services to the population. However, the disadvantages are that it can lead to inefficiency, waste, and a lack of innovation. The lack of individual decision-making and market forces can also lead to shortages of goods and services and a lack of consumer choice.
Conclusion
In conclusion, the principal feature of a command economy is the central planning board, which controls all major aspects of economic activity. This means that the government has complete control over the economy, and there is no room for individual decision-making or market forces to influence economic outcomes. While a command economy can lead to rapid industrialization and economic growth, it can also lead to inefficiency, waste, and a lack of innovation.
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A principal feature of a command economy is that ______________________.a)Production decisions are made by profit-maximizing firms.b)There is a central planning board at the top, which transmits economic decisions down to the various producing and consuming units below.c)Consumers are allowed to determine what is produced based on their demand for goods and services.d)Regulatory agencies constrain the most egregious forms of market power in a market system of allocation.Correct answer is option 'B'. Can you explain this answer?
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A principal feature of a command economy is that ______________________.a)Production decisions are made by profit-maximizing firms.b)There is a central planning board at the top, which transmits economic decisions down to the various producing and consuming units below.c)Consumers are allowed to determine what is produced based on their demand for goods and services.d)Regulatory agencies constrain the most egregious forms of market power in a market system of allocation.Correct answer is option 'B'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about A principal feature of a command economy is that ______________________.a)Production decisions are made by profit-maximizing firms.b)There is a central planning board at the top, which transmits economic decisions down to the various producing and consuming units below.c)Consumers are allowed to determine what is produced based on their demand for goods and services.d)Regulatory agencies constrain the most egregious forms of market power in a market system of allocation.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A principal feature of a command economy is that ______________________.a)Production decisions are made by profit-maximizing firms.b)There is a central planning board at the top, which transmits economic decisions down to the various producing and consuming units below.c)Consumers are allowed to determine what is produced based on their demand for goods and services.d)Regulatory agencies constrain the most egregious forms of market power in a market system of allocation.Correct answer is option 'B'. Can you explain this answer?.
A principal feature of a command economy is that ______________________.a)Production decisions are made by profit-maximizing firms.b)There is a central planning board at the top, which transmits economic decisions down to the various producing and consuming units below.c)Consumers are allowed to determine what is produced based on their demand for goods and services.d)Regulatory agencies constrain the most egregious forms of market power in a market system of allocation.Correct answer is option 'B'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about A principal feature of a command economy is that ______________________.a)Production decisions are made by profit-maximizing firms.b)There is a central planning board at the top, which transmits economic decisions down to the various producing and consuming units below.c)Consumers are allowed to determine what is produced based on their demand for goods and services.d)Regulatory agencies constrain the most egregious forms of market power in a market system of allocation.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A principal feature of a command economy is that ______________________.a)Production decisions are made by profit-maximizing firms.b)There is a central planning board at the top, which transmits economic decisions down to the various producing and consuming units below.c)Consumers are allowed to determine what is produced based on their demand for goods and services.d)Regulatory agencies constrain the most egregious forms of market power in a market system of allocation.Correct answer is option 'B'. Can you explain this answer?.
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