One of the Reasons That Communism Failed in the Soviet

question 18

Multiple Choice

One of the reasons that communism failed in the Soviet Union is that,under communism:

• A)no one had a property right,so there is little incentive to use resources efficiently.
• B)there were high rates of unemployment and homelessness accompanied by a high rate of inflation.
• C)planners did not have all the information necessary to make efficient decisions.
• D)there was a high degree of political freedom.
• E)there was a high degree of economic freedom.

---

Definitions:

Budgeted Unit Sales

The projected quantity of sales units a company expects to sell over a specific period, often used in financial and sales planning.

Cash Collections

The total amount of money received by a company from its various sources, including sales, during a specific period.

Selling Price

The amount for which something is sold, establishing the revenue a company receives from the sale of a product or service.

Direct Materials Budget

A financial plan that estimates the raw materials required for production and the associated costs based on forecasted sales.