kaiwicks
kaiwicks kaiwicks
  • 27-11-2015
  • Business
contestada

Why are command economies usually less efficient than market economies?

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Vuk15
Vuk15 Vuk15
  • 14-03-2017
In a command economies, it is the government (the politicians) that decides what gets produced, when and how. Such decisions are not always well informed - they can be politically motivated and uninformed. Therefore often, the wrong items are produced, such as too many fridges while what is needed are wasching machines. In contrast, in market economies, it is the market that regulates that directly, through the decisions that people take, and this is a lot more efficient.
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