2
QuizMultiple Choice

The Need for a Constitution — Unit test

Question 2 • *GHS Government *V*

What is one likely disadvantage of the centralized economic planning used in a command economy?

Answer
A
a lack of information about production goals and priorities
B
a lack of workers to produce and distribute goods and services
C
a shortage of supplies resulting from an underproduction of goods
D
a shortage of subsidies for food, housing, and utilities

Explanation

Central planners may have difficulty predicting how much of each good people need. If they underestimate demand, producers make too few goods, leading to shortages. Therefore, a likely disadvantage is a shortage of supplies resulting from underproduction of goods.

AI-written and checked against the verified answer.

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