Which of the following is a strength of a command-based economic system?
a. It is possible for goods to be allocated based on need rather than based on willingness and ability to pay.
b. Since price is freely set based on supply and demand, there are few shortages or surpluses.
c. Consumers can transmit their preference for product quality and variety by way of their "dollar votes" cast in the marketplace.
d. Producers have strong incentives to innovate because successful innovators are rewarded with higher profit.
a
You might also like to view...
The theory that firms will be slow to change their products' prices in response to changes in demand because there are costs to changing prices is called
A) transactions cost theory. B) cost—benefit theory. C) menu cost theory. D) gift exchange theory.
Which of the following is NOT a characteristic of oligopoly firms?
A) strategic dependence B) product differentiation C) non-price competition, such as advertising and promotions D) perfectly elastic demand curves