ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Previously abundant economic resources became scarce.
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Central planners found it increasingly difficult to coordinate the economic decisions of consumers, resource suppliers, and businesses.
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Firms manufactured more output than consumers could afford to buy, resulting in a general glut.
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Prices were set too low in all markets.
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Detailed explanation-1: -The Soviet Union achieved very rapid rates of economic growth. However, by the 1960s, the system was struggling with corruption, inefficiency and a lack of incentives.
Detailed explanation-2: -Which is one factor that contributed to the collapse of the Soviet command economy in the late twentieth century? Exporting natural resources led to food shortages. Widespread inflation led to high prices and scarcity.
Detailed explanation-3: -Without prices, producers found it difficult to devote efficient resources to production, and eventually, the Soviet economic system fell apart in the early 1990s.
Detailed explanation-4: -Some of the cons include a lack of efficient resource allocation, lack of innovation, and the needs/preferences of society may be ignored due to poor planning.