Author Question: What does it mean to have a command economy, and what were two ways in which it proved inefficient ... (Read 58 times)

yoooooman · **on:** Jul 13, 2018

What does it mean to have a command economy, and what were two ways in which it proved inefficient and unwieldy?

Question 2

Which of the following is NOT one of the four most populous countries in the European region?
a. Germany
b. Italy
c. United Kingdom
d. France
e. Spain

Anna · **Reply #1 on:** Jul 13, 2018

Answer to Question 1

In a command economy, a central agency, which for the USSR was the Gosplan, formulates national plans, which are then communicated down the chain until reaching individuals.
This was an unwieldy and inefficient process in several ways. First, the planners in Moscow were essentially required to act as CEOs of a giant corporation, effectively USSR, Inc., that would manage the economy of an area larger than North Americaa gargantuan, impossible task. Further, the Soviet planning bureaucracy had no free market to guide it, so the system produced goods that people would not buy or failed to produce goods that people would have liked to buy. And Gosplan stated production targets in quantitative rather than qualitative terms, churning out abundant but substandard products.

Answer to Question 2

E