JAMB - Economics (2012 - No. 1)
A major disadvantage of a socialist economy is that
corruption is rampant
consumer's sovereignty is lost
income inequality is entrenched
there is high level of unemployment
Explication
One of the major criticisms of socialism are that socialist countries have a tendency to develop too many layers of bureaucracy, which leads to corrupt practices. The government controls much of the economy's resource. They decides the whats, whens, and hows of production.