Inefficiency is a flaw of a command economy because there is less incentive for resources to flow to their highest-valued uses.

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In a command economy, the government makes the decisions about what goods and services are produced and how they are distributed. This means that there is less incentive for individuals and businesses to innovate and compete, which can result in inefficiencies in resource allocation. Without the market signals of supply and demand, resources may be allocated to uses that are not the most valuable, leading to wastefulness and lower overall productivity.

Inefficiency Is a Flaw of a Command Economy Because There