10. Strengths and weaknesses of the three basic types of economiesImagine you are a consultant who has been asked to summarize the strengths and weaknesses of Directavia, a nation with a pure command economy.Which of the following would you include in your report as weaknesses of Directavia's economy? Check all that apply.O Firms have no incentive to produce the so-called public goods, such as national defense, because private firms cannot prevent nonpayersfrom enjoying the benefits of public goods.O The economy cannot quickly change the type of goods being produced to meet new priorities.O Because government is responsible for all production, the variety of products tends to be limited.O Because nobody in particular owns resources, each person has less incentive to employ them in their highest-valued use, so someresources are wasted.

Pure command economy is an economic system that totally depends on the government for allocation of…

Answered: Which of the following would you…

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Which of the following would you include in your report as weaknesses of Directavia's economy? Check all that apply.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter3: Economic Decision Makers

Section: Chapter Questions

Problem 1.2P

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Question

10. Strengths and weaknesses of the three basic types of economies
Imagine you are a consultant who has been asked to summarize the strengths and weaknesses of Directavia, a nation with a pure command economy.
Which of the following would you include in your report as weaknesses of Directavia's economy? Check all that apply.
O Firms have no incentive to produce the so-called public goods, such as national defense, because private firms cannot prevent nonpayers
from enjoying the benefits of public goods.
O The economy cannot quickly change the type of goods being produced to meet new priorities.
O Because government is responsible for all production, the variety of products tends to be limited.
O Because nobody in particular owns resources, each person has less incentive to employ them in their highest-valued use, so some
resources are wasted.

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