Central planning is an ineffective method to organize an


Central planning is an ineffective method to organize an economy because

1. most central planners are less intelligent than business entrepreneurs in market economies.

2. central planners cannot possibly obtain all the information necessary to allocate resources efficiently.

3. central planners do not respond predictably to incentives.

4. central planners have inadequate funding to meet the needs of their constituents

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Microeconomics: Central planning is an ineffective method to organize an
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