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What are two reasons why a centrally planned economy tend to be less efficient than a market base economy

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Q: Why do centrally planned economies tend not to be efficient?
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Is a mixed economy the same as a market economy?

No. When we say "market economy," we likely mean to say a free market economy-an economy unfettered with government policy interventions. This is usually stated in opposition to a planned command economy-planned by government personnel. Neither of these extremes exist in the real world. World economies are mixed economies. The difference between countries is the degree to which they are mixed. Economies such as Cuba and the former Soviet Union tend toward the command economy whilst economies such as Hong Kong and Singapore are cited as the freest market economies.


When there are external benefits unregulated markets will tend to produce more than the efficient level of output Is this true or false?

false because it tend to produce less than the efficient level of output


Do some people continue to have employment problems even though the stock market is rising?

If you want to know why people have unemployment problems even with a rising stock market, the answer is that stock markets tend to run ahead about six months of "real", i.e. non-stock-exchange-related economies.


What is market anomalies in efficient market?

The main feature of efficient markets is that they are not predictable. For example, if the stock market (e.g. NYSE) is efficient, it follows that it is impossible to predict what prices of stocks will be in the future. Market anomalies happen when some prices in the market turn out to be predictable. The most important anomaly is probably the value anomaly: stocks that have a low market value compared to their accounting value (ie "value stocks", with high book-to-market value) tend to outperform stocks that have a large market value relative to their book value (ie "growth stocks" with low book-to-market stocks). Another example is the so-called "momentum" anomaly. It says that stocks that have a large return during a certain period will tend to continue having larger return than other stocks for some time.


Is a market command or traditional economy most likely to come up with new and better products?

A free market economy is more receptive to new products and idea. The freedom offered in such nations helps towards the development of new products. Traditional economies and nations tend to rely on the older methods of product production and are heavily regulated, giving new idea and products less attention.

Related questions

Is a mixed economy the same as a market economy?

No. When we say "market economy," we likely mean to say a free market economy-an economy unfettered with government policy interventions. This is usually stated in opposition to a planned command economy-planned by government personnel. Neither of these extremes exist in the real world. World economies are mixed economies. The difference between countries is the degree to which they are mixed. Economies such as Cuba and the former Soviet Union tend toward the command economy whilst economies such as Hong Kong and Singapore are cited as the freest market economies.


When there are external benefits unregulated markets will tend to produce more than the efficient level of output Is this true or false?

false because it tend to produce less than the efficient level of output


To what extent does globalization contribute to sustainable prosperity for all people?

Globalization helps businesses increase their workload which means more widespread profits. When more economies prosper, the individual people in those economies tend to prosper.


Of the three types of economies command market and traditional which does the following fit into Rich Americans tend to send their children to private schools.?

traditional


What constitutes premeditated acts to murder?

Any evidence that would tend to establish the fact that you had planned the event in advance of doing it.


Are Germans very organized?

Germans do tend to be organised, structured, efficient etc., but not all Germans are very organised.


What do critics say about market economies?

Critics commonly argue that in a market system the rich, who begin with a disproportionately large share of resources, tend to become richer while the poor, who begin with a disproportionately small share of resources, tend to become poorer.


On the basis of surface area to volume ratio why do cells tend to remain small?

because cell has to maintain that ratio in order to absorb more nutrients and for efficient absorption of materials. Cells tend to remain small because it promotes efficient transport. If a size of cell get bigger, it takes a longer time for transport and diffusion.


How efficient would a Sonicare Toothbrush be?

A Sonicare Toothbrush is actually very efficient in cleaning your entire mouth. It can get in between your teeth to prevent gingivitis, and also makes it easier to clean the gums, which is where most people tend to ignore.


Why is japan more successful than US in the auto industry?

Among other reasons, Japanese cars tend to be smaller and more fuel efficient.


Is the following hypothesis testable college students who read more tend to have more efficient study habits compared to students who read less?

yes


Why are tanks most efficient in the military?

Tanks tend to be one of the more efficient tools in the military's arsenal because of their ability to be used in multiple situations. For example, if a squad comes under fire, the tank may be used as cover, since the thickness of the armor allows the tank operators to be safe, as well as the squad following behind them. The weaponry on tanks tend to be the top of the line, as well.