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 KCSE business studies paper 1 revision questions and answers Set 3

Identify four reasons why most countries are getting rid of direct production

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Answer Text:
-It does not allow specialization
-Promotes individualism
-Does not encourage invention and innovation since it does not make use of modern technology
-Limits the choice of the producer since he cannot produce a significantly wide variety of goods
-Does not provide surplus for selling in the market
-Goods produced are generally a low quality since there is no competition for the market


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