Question

Risk management in command economies A. is easy because there is no risk. B. is easy because the government controls most activity and can eliminate risk. C. tends to be done poorly because government officials do not understand risk. D. tends to be done poorly because decision makers are insulated from the risk of making a poor decision.

Answer 1

Answer: Risk management in command economies "C. tends to be done poorly because government officials do not understand risk.".

Explanation: In command economies, a type of system is presented in which the government intervenes in the economy, determining what goods to produce, how much and at what price. It is one of the main characteristics of communist societies. When talking about risk, government officials who apply these economic measures generally have little knowledge about financial factors such as risk and make decisions without knowing what consequences it can have.