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.

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Definitions:

World Output

The total value of goods and services produced across the globe within a specific time frame, often used to measure the economic performance of the global economy.

Self-Sufficient

Refers to an individual, household, or community that has the capacity to fulfill all its needs without external assistance.

Resource Endowments

Resource endowments refer to the natural resources a country has available for use and trade, influencing its economic structure and development potential.

Net Importer

A country or region that imports more goods and services than it exports, resulting in a negative trade balance.