Central Planning Proved to Be a Failure in Communist Countries

question 50

Multiple Choice

Central planning proved to be a failure in communist countries in part because of:

• A) abundant market information.
• B) unquestioned reliance on the price system.
• C) insufficient use of government ownership.
• D) inadequate rewards for innovation.

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Definitions:

Perceptual Tendencies

The natural biases or inclinations in the way people perceive and interpret information from their environment.

Sensing

The process of receiving and interpreting information through the five senses to understand and interact with the environment.

Gathering Data

The process of collecting information or facts from various sources to be used for analysis or decision-making.

Big Picture

An overall perspective or an understanding of how all the parts of a situation, project, or problem fit together.