Question

Which of the following describes a drawback of a command economy compared to a free market economy?

A. It reduces innovation by requiring all businesses to follow government orders.
B. It promotes corruption by removing government regulations on business.
C. It produces a small upper class that controls all of the profits businesses produce.
D. It requires companies to produce only cheap consumer goods for poor citizens.

Answer 1

A command economy reduces innovation by requiring all businesses to follow government orders.

Answer 2

The answer to your question is A.