Why are command economies usually less efficient than market economies?

1 answer:

3 0

I can give you my take on it:

In command economies the quantity and more importantly the prize of the products is decided by the government and not by the people in production. As a result, people in the production can't have the motivation of producing more, as they won't benefit from it. So command economy encourages low motivation among the workers (i believe this was the case in the Eastern Block)

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