Which One of the Following Was NOT a Weakness of Centrally

question 12

Multiple Choice

Which one of the following was NOT a weakness of centrally controlled,communist economies in China until the 1980s and in the Soviet Union?

• A) They produced rapid economic growth in the early stages of industrialization, but stagnated, at least somewhat, later on.
• B) Centrally controlled economic plans lacked accurate measures for deciding what goods to produce and how much of them.
• C) Since companies were rewarded solely for meeting their production quotas (i.e., the quantity of goods they produce), there was little attention to quality and consumer goods were frequently shoddy.
• D) They were prone to very high inflation.
• E) They gave excessive power to economic planners (state bureaucrats) and were prone to corruption.

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Definitions:

Long Delivery Times

Long Delivery Times refer to the extended period it takes for a customer to receive a product or service after placing an order, often due to manufacturing or logistical complexities.

Credit Period

The amount of time allowed by a seller to a buyer to pay for the goods or services purchased on credit, usually described in days.

Highly Perishable

Describes goods or products that have a short shelf life and require immediate consumption, sale, or processing to avoid spoilage or loss of value.

High Cost Item

Products or services that require a significant amount of money to purchase or maintain, often reflecting quality or luxury status.