Which of the following is a potential drawback of centralized resource allocatio
Practice Questions
Q1
Which of the following is a potential drawback of centralized resource allocation?
Increased flexibility in resource distribution.
Faster decision-making processes.
Reduced responsiveness to local needs.
Greater control over resource usage.
Questions & Step-by-Step Solutions
Which of the following is a potential drawback of centralized resource allocation?
Step 1: Understand what centralized resource allocation means. It is when one central authority makes decisions about how resources are distributed.
Step 2: Think about what 'responsiveness to local needs' means. It refers to how quickly and effectively the central authority can address the specific needs of different local areas.
Step 3: Consider the potential drawback of this system. Since decisions are made centrally, local areas may not get the resources they need quickly or in the right amounts.
Step 4: Identify the correct option from the choices given. The option that mentions reduced responsiveness to local needs is the correct answer.
