A major drawback to communism as an economic system is that
A) government control of the factors of production is only temporary.
B) people don't like communism.
C) individuals contribute according to their ability.
D) individuals receive economic benefits according to their needs.
E) production of goods and services is inefficient because of the lack of a profit incentive.

Question

Quizplus · Accepted Answer

Communism eliminates the profit incentive, which is a major motivation for individuals and businesses to produce goods and services efficiently. Without the drive to earn profits, the economy may become inefficient, leading to potentially lower production levels and supply shortages.

A Major Drawback to Communism as an Economic System Is