Which of the following occurs when there was a shortage of supply in a centrally planned economy?
A)Central planners reduced the amount supplied to each sector
B)Shoppers waited in long lines at retail stores
C)Store shelves were empty
D)Shop operators expected "tips" or bribes for supplying scarce consumer goods
E)All of the answers are correct

Question

Quizplus · Accepted Answer

In a centrally planned economy, shortages of supply were common due to the lack of market signals to efficiently allocate resources. When shortages occurred, central planners would usually reduce the amount supplied to each sector, creating long lines at retail stores and empty shelves. Shop operators may also require bribes or tips to provide scarce consumer goods. Therefore, all options (A, B, C, D) are correct.

Which of the Following Occurs When There Was a Shortage