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Marizza181 [45]
3 years ago
8

Why do command economies believe that an authoritarian system is more efficient than the price system for allocating scarce reso

urces?
Social Studies
2 answers:
STatiana [176]3 years ago
7 0

Command economies believe that if resource allocation  (such as money, food, factories etc) are left in the hands of the private sector, greed and personal motives would ensure that the very few and powerful manage resources in a way that will make them rich and leave the poor, poorer.

Command economies believe that too ensure that every person, both rich or poor, equally benefit from a country's resources, the government intervention would be required to distribute food, create jobs, cap wages, import scare products and export local production.

In theory, the system helps to benefits the poor. In reality, command economics rarely ever work.


mestny [16]3 years ago
5 0

Because the government has full control over all economic activities that occur on the market in a country so the economy will be stable and easy to control so that it can develop and eventually will progress.

<h2>Further explanation</h2>

The command economic system is an economic system in which the state or government has full control over all economic activities that take place in the market within a country. So in the command economic system, resources, both production and capital are controlled by the government. The command economic system is usually also called a centralized or guided or socialist economic system.

As mentioned above, the government has full control over its economy, so the government is very responsible for what is in the country's economy. Government which able to innovate with its policies, the economy in the country will be stable, developing and eventually going forward. In this system, the government also has a goal to control the economy to achieve the welfare of its citizens.

Because the economic system is controlled by the government, the prices of products and services will be easily controlled. Entrepreneurs or other parties cannot just raise prices just to make a profit. Therefore the price will be stable and economic demand can also be achieved easily.

Inflation in countries with a command economic system will be relatively stable and easy to control. This is because with this system, the country will rarely experience a crisis. In addition, the production and distribution that run smoothly will also affect the value of the country's currency in the eyes of other countries or foreign countries.

Learn  More

The command economic : brainly.com/question/7297794

Details

Class: college

Subject: social studies

Keywords : command, economic, system, goverment,activities

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