Economic Historians Have Pointed to Which of the Following to Explain

question 21

Multiple Choice

Economic historians have pointed to which of the following to explain the demise of the Soviet Union?
I. Managers were evaluated based on profits rather than production quotas.
II. There was misallocation of investment, with "prestige" sectors chosen over less productive ones.
III. Planners emphasized the short run over the long run.

• A)I only
• B)II only
• C)III only
• D)II and III

---

Definitions:

Lender of Last Resort

An institution, usually a central bank, that offers loans to banks or other eligible institutions that are in financial difficulty or are considered critical to the financial system.

Joseph Stiglitz

An American economist and a professor at Columbia University, renowned for his work on income distribution, asset risk management, and globalization.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, leading to increased connectivity and interdependence.

Nobel Prize-winning Economist

An economist who has been awarded the Nobel Prize in Economic Sciences, an honor recognizing outstanding contributions to the field of economics.