Around the world, once-socialist countries have replaced central plans with
A)foreign aid
B)budgets
C)special interests
D)markets
E)capital equipment

Question

Quizplus · Accepted Answer

Central planning is a characteristic feature of socialist economies where the government controls the means of production and centrally plans for the allocation of resources. However, many countries that once practiced socialism have switched to market economies, where the economy is guided by market forces such as supply and demand, competition, and prices. The market economy allows for private ownership, encourages entrepreneurship and innovation, and responds flexibly to changes in consumer preferences, thus promoting economic growth and development.

Around the World, Once-Socialist Countries Have Replaced Central Plans with