If products were in short or surplus supply in the Soviet Union,
A) price and proﬁt signals eliminated those shortages and surpluses.
B) price and proﬁt signals intensiﬁed those shortages and surpluses.
C) producers would not react because no price or proﬁt signals occurred.
D) the planners would immediately adjust production to achieve equilibrium.

Question

Quizplus · Accepted Answer

In the Soviet Union, the economy was centrally planned, meaning that prices and production levels were set by the government rather than determined by market forces. As a result, producers did not respond to price or profit signals to adjust supply, leading to persistent shortages or surpluses.

If Products Were in Short or Surplus Supply in the Soviet