Economic historians have pointed to which of the following to explain the demise of the Soviet Union?
I. Managers were evaluated based on profits rather than production quotas.
II. There was misallocation of investment, with "prestige" sectors chosen over less productive ones.
III. Planners emphasized the short run over the long run.
A)I only
B)II only
C)III only
D)II and III

Question

Quizplus · Accepted Answer

Economic historians have pointed out that the misallocation of investment towards "prestige" sectors at the expense of less productive ones (II) and an emphasis on short-term planning rather than long-term planning (III) contributed significantly to the demise of the Soviet Union. Additionally, the shift towards evaluating managers based on profits rather than production quotas (I) may also have played a role.

Economic Historians Have Pointed to Which of the Following to Explain