Which one of the following was NOT a weakness of centrally controlled,communist economies in China until the 1980s and in the Soviet Union?
A) They produced rapid economic growth in the early stages of industrialization, but stagnated, at least somewhat, later on.
B) Centrally controlled economic plans lacked accurate measures for deciding what goods to produce and how much of them.
C) Since companies were rewarded solely for meeting their production quotas (i.e., the quantity of goods they produce) , there was little attention to quality and consumer goods were frequently shoddy.
D) They were prone to very high inflation.
E) They gave excessive power to economic planners (state bureaucrats) and were prone to corruption.
Correct Answer:
Verified
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