One of the biggest problems with centrally planned economies is that ... a. demand curves are...

One of the biggest problems with centrally planned economies is that ...

a. demand curves are inelastic

b. then typically have higher levels of corruption compared with market economics

c. central planners have limited information on the true value of the various ways to utilize scarce resources

d. they fail to reach economic efficiency because their policies limit global trade

Expert Solution

Ans) Centrally planned economy is that where a central authority takes all the economic decisions. Historically, it has failed because it failed to understand the true value that consumers put on any good and services. Thus, allocating the resources inefficiently.

Option c. (central planners have limited information on the true value of the various ways to utilize scarce resources)

Rahul Sunny answered 2 years ago

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One of the biggest problems with centrally planned economies is that ... a. demand curves are...

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