Question

In command economy what are the issues with scarcity who and who controls the FOP and why?

Answer 1

Answer:

Scarcity occurs because of the government.

Explanation:

In command economy, there is no proper management of the government official due to which the problem of scarcity happens. It also occurs due to late decision taken by the government in the fulfillment of the resources required for the production of a product. If the resources are not provided by the government on time so scarcity of the product occurs.

Financial operating plan (FOP) is a plan in which a person can calculate the revenue and the expenses done in a particular time. This plan executes by the government.