Innovation lagged in the centrally planned economies because
A) there was too much domestic business competition.
B) there was too much competition from foreign ﬁrms.
C) enterprises resisted innovation in fear that their production targets would be raised.
D) exports had to equal imports for the plan to work.

Question

Quizplus · Accepted Answer

Enterprises in centrally planned economies resisted innovation because they fear that their production targets would be raised, which could lead to potential punishments or negative consequences. The focus was primarily on meeting production targets set by the government, rather than on innovation and development.

Innovation Lagged in the Centrally Planned Economies Because