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Which of the following would you include in your report as weaknesses of Directavia's economy? Check all that apply.

Which of the following would you include in your report as weaknesses of Directavia's economy? Check all that apply.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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10. Strengths and weaknesses of the three basic types of economies Imagine you are a consultant who has been asked to summarize the strengths and weaknesses of Directavia, a nation with a pure command economy. Which of the following would you include in your report as weaknesses of Directavia's economy? Check all that apply. O Firms have no incentive to produce the so-called public goods, such as national defense, because private firms cannot prevent nonpayers from enjoying the benefits of public goods. O The economy cannot quickly change the type of goods being produced to meet new priorities. O Because government is responsible for all production, the variety of products tends to be limited. O Because nobody in particular owns resources, each person has less incentive to employ them in their highest-valued use, so some resources are wasted.
Transcribed Image Text:10. Strengths and weaknesses of the three basic types of economies Imagine you are a consultant who has been asked to summarize the strengths and weaknesses of Directavia, a nation with a pure command economy. Which of the following would you include in your report as weaknesses of Directavia's economy? Check all that apply. O Firms have no incentive to produce the so-called public goods, such as national defense, because private firms cannot prevent nonpayers from enjoying the benefits of public goods. O The economy cannot quickly change the type of goods being produced to meet new priorities. O Because government is responsible for all production, the variety of products tends to be limited. O Because nobody in particular owns resources, each person has less incentive to employ them in their highest-valued use, so some resources are wasted.
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