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fomenos
3 years ago
13

Why are command economies usually less efficient than market economies?

Social Studies
1 answer:
Liono4ka [1.6K]3 years ago
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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For example, online retail had a revolutionary impact on American economy. Thanks to online retail companies, such as Amazon, shopping has become much faster and easier on the customers side. Customers no longer have to spend time going to the shop, they can make quick purchases online and get their order delivered to the doorstep. On the other hand, online retail companies do not need to rent shopping spaces anymore, they rather need to build super efficient fulfillment centers.

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Answer:

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