Stagnation Can Occur in Planned Economies Because

question 99

Multiple Choice

Stagnation can occur in planned economies because:

• A) entrepreneurial individuals have few economic incentives for innovation.
• B) private ownership of means of production leads to exploitation of workers.
• C) prices of goods and services are fixed by market forces of demand and supply.
• D) lack of barriers to trade results in increased competition for domestic producers.

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Definitions:

Historical Developments

Refers to significant events, changes, or evolutions that have occurred over time, shaping societies, cultures, and the world.

Incomes

Refers to money received, especially on a regular basis, for work or through investments.

Capital Flight

The rapid movement of large sums of money or assets out of a country due to economic or political instability.

Industrial Advanced Countries (IACs)

Countries characterized by high levels of industrialization, technological advancement, and economic development.