Which of the following is a NOT a major setback for command economies?

tts Icon

Politicians drive decision-making, rather than consumers.
tts Icon

Workers are less motivated.
tts Icon

Monopolies form for some products.
tts Icon

There is no incentive to innovate.
tts Icon

1 answer

All the options listed are typically considered major setbacks for command economies, so none of them can be singled out as "not a major setback." Let's briefly analyze each one:

  1. Politicians drive decision-making, rather than consumers - This often leads to a disconnect between what is produced and what people actually want, causing inefficiencies.

  2. Workers are less motivated - In command economies, the lack of competition and rewards for individual performance can lead to lower motivation among workers.

  3. Monopolies form for some products - Since the state controls production, it can lead to monopolies, which reduce competition and can result in lower quality and higher prices.

  4. There is no incentive to innovate - The absence of competition and profit motives in a command economy often stifles innovation and technological advancement.

Given this analysis, all are indeed major setbacks of command economies. If you are looking for an option that stands out as less significant in certain contexts, that might depend on specific economic scenarios, but all four options illustrate common criticisms of command economies.