Central Planning in Communist Countries Failed Because of Insufficient Incentives

question 39

True/False

Central planning in communist countries failed because of insufficient incentives for innovation and excessive market information.

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Definitions:

Loan

A sum of money that is borrowed, typically from a financial institution, which is expected to be paid back with interest.

Lease

A contractual agreement in which one party (the lessor) allows another (the lessee) to use an asset for a specified period of time in exchange for payment or some other consideration.

Lessor

A lessor is a person or entity who leases or rents property to another, known as the lessee.

Tenant

An individual who rents or leases a space, such as an apartment or office, from a landlord.