An evaluation of centrally planned economies reveals that they:

Question

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Centrally planned economies are characterized by government control over production and distribution of goods and services. While they may have had some successes in achieving certain goals, such as promoting technological innovation or attempting to achieve a more equal distribution of income, they are also known for experiencing production rigidities and shortages. This is because central planners may not necessarily make efficient or effective decisions about what goods and services should be produced, how much to produce, or how to distribute them. As a result, shortages of key goods and services could occur, causing significant problems for the economy and the population.

An Evaluation of Centrally Planned Economies Reveals That They