Country A has a command economy. The country’s economic plan calls for manufacturing 10,000 new electric heaters for the winter months. However, the winter turns out to be much colder than usual. As a result, the demand for new heaters is higher than the number of heaters available. Many people are forced to get through the winter without an electric heater.
Answer
A
Command economies are profit driven.
B
Command economies have difficulty meeting changing needs.
C
Command economies fail to regulate what goods are produced.
D
Command economies ignore consumer needs.
Explanation
The economic plan set production at 10,000 heaters before the unusually cold winter increased demand. Because production could not adjust quickly enough, the supply fell short and some people went without heaters. This illustrates that command economies can have difficulty meeting changing needs. Choice D is too broad: the plan did provide heaters, but it did not respond to the unexpectedly higher demand.
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