Which of the following is a reason that command economies tend to stagnate?

Question

Quizplus · Accepted Answer

While the objective of a command economy is to mobilize economic resources for the public good, the opposite usually occurs. In a command economy, state-owned enterprises have little incentive to control costs and be efficient, because they cannot go out of business. Also, the abolition of private ownership means there is no incentive for individuals to look for better ways to serve consumer needs; hence, dynamism and innovation are absent from command economies. Instead of growing and becoming more prosperous, such economies tend to stagnate.

Which of the Following Is a Reason That Command Economies