Advantages of A Comand Economy my

Question 1

Corporation between firms

Answer 1

• corporation between firms can lead to high levels of output. In general the maximisation of output replaces the maximation of profits

Question 2

Reductions in inequality

Answer 2

• there is a reduction in inequality compared to free market economies since the government controls the wages of all Workers

Question 3

Government may limit external costs

Answer 3

• the government may limit the external costs from production and consumption such as as pollution emissions
• they also add taxes on harmful goods such as alcohol and tobacco