In a command economy, the allocation of resources and goods is centrally planned by the government, which leads to specific outcomes that may be less common in a market economy. Based on this understanding, the following events would be more common in a command economy:
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People with lower incomes have the same goods as people with higher incomes.
- In a command economy, the government often controls the distribution of goods to ensure equality among citizens, regardless of income.
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People wait in long lines for cheap goods.
- Shortages and inefficiencies in production can lead to long queues for basic necessities in a command economy, where prices are often fixed and not reflective of supply and demand.
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Young college graduates have difficulties finding jobs.
- In a command economy, job allocation may not be based on merit or demand for labor, leading to mismatches in available jobs and graduates’ skills, resulting in difficulties for young graduates.
The other options provided would be less characteristic of a command economy:
- New businesses are started to fill society’s unmet needs. (Typically more common in a market economy)
- A great deal of food in a market is thrown out because people wait in long lines for cheap goods. (This scenario is more indicative of a market economy with surplus and waste)
- Companies develop new and useful technologies. (Innovation is generally more prevalent in market economies due to competition and profit motives)
Thus, the correct selections would be:
- People with lower incomes have the same goods as people with higher incomes.
- People wait in long lines for cheap goods.
- Young college graduates have difficulties finding jobs.
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