In general, central planning has:
A) been the great success story of the twentieth century.
B) provided a high standard of living in many places, for example, Cuba and North Korea.
C) been a large failure.
D) caused India to become a fast-growing economy.

Question

Quizplus · Accepted Answer

Central planning has been largely unsuccessful as it leads to inefficient allocation of resources, lack of innovation, and a tendency towards authoritarianism. Examples of centrally planned economies such as the former Soviet Union, China during the Cultural Revolution, and North Korea have been associated with economic stagnation and human rights abuses. While India did adopt central planning in the post-independence period, it was eventually abandoned in favor of market-oriented reforms, which have led to improved economic performance.

In General, Central Planning Has