In comparison to market economies, command economies lack: A. governm

QUESTION

In comparison to market economies, command economies lack:

A. government interference in allocation of resources.

B. dynamism and innovation.

C. concern for the interests of the nation.

D. commitment to communism.

E. any opposition to private ownership.

ANSWER

B
In a command economy, state-owned enterprises have little incentive to control costs and be efficient because they cannot go out of business. Also, the abolition of private ownership means there is no incentive for individuals to look for better ways to serve consumer needs; hence, dynamism and innovation are absent from command economies.