Question

question 9
why do command economies often struggle with shortages and inefficiency? (6.6b)
a) because the government owns too much property
b) because workers earn wages that are too high
c) because there is no competition or profit motive to drive innovation
d) because consumers have too much power to make choices

question 10
what is a major difference between the goals of capitalist and command economies? (6.7b)
a) capitalist economies focus on profit; command economies focus on equal distribution
b) capitalist economies avoid competition; command economies encourage it
capitalist economies are controlled by government; command economies are not
capitalist economies have no private property; command economies do

Explanation:

Question 9

To solve this, we analyze each option:

• Option A: Government ownership of property isn't the direct cause of shortages/inefficiency in command economies.
• Option B: High wages don't cause inefficiency; rather, lack of incentive is a factor.
• Option C: Command economies are centrally planned, so no competition or profit motive. This lack of incentive leads to innovation lag, shortages, and inefficiency.
• Option D: In command economies, consumers have limited choice, not too much.

Analyzing each option:

• Option A: Capitalist economies prioritize profit (driven by private enterprise), while command economies aim for equal distribution (central planning for equity). This matches their core goals.
• Option B: Capitalist economies thrive on competition; command economies have little competition. So this is incorrect.
• Option C: Command economies are government - controlled, capitalist ones are market - driven. This is reversed.
• Option D: Capitalist economies have private property; command economies have more state - owned property. This is reversed.

Answer:

C. Because there is no competition or profit motive to drive innovation

Question 10