Question

What is one problem faced by a command economy?

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Group of answer choices

Education is offered at no cost,

Food prices are set a a low levle.

THe price of housing is set a low level.

Shortages of goods may occur if the government can not predict what the people need.

Answer 1

Shortages of goods may occur if the government cannot predict what the people need.

Explanation: In a command economy central planners set production and prices; when they misjudge demand or allocate resources poorly, goods run short (or are overproduced), causing persistent shortages.